FX.co ★ US Retail Sales Surprise to the Upside

In August 2025, retail sales in the United States experienced a 0.6% increase compared to the previous month. This rise matched an upwardly revised 0.6% gain in July and exceeded market forecasts of a modest 0.2% growth. Significant surges were noted in several sectors: nonstore retailers witnessed a 2% increase; clothing stores saw a 1% rise; while sales at sporting goods, hobby, musical instrument, and booksellers grew by 0.8%. The food services and drinking places sector expanded by 0.7%, and both gasoline stations and motor vehicle sales rose by 0.5%. Moreover, electronics and appliance stores, as well as food and beverage outlets, each experienced a 0.3% uplift, while building materials and garden equipment suppliers saw a modest 0.1% growth. Conversely, declines were observed in various categories: miscellaneous store retailers dropped by 1.1%; furniture sales decreased by 0.3%; and sales in general merchandise stores and health and personal care outlets each slightly fell by 0.1%. Importantly, retail sales excluding food services, auto dealers, building materials, and gasoline stations—which are components used in GDP calculations—climbed 0.7%. This was more robust than the previous 0.5% increase and exceeded predictions of a 0.4% rise.