U.S. retail sales unexpectedly rose last month, a surprisingly strong result that likely reduces the likelihood of a big interest rate cut from the Federal Reserve this week.
Retail purchases rose 0.1% in August, Commerce Department data released Tuesday showed, beating economists' expectations of a 0.2% decline as cash-strapped consumers showed resilience despite a shaky economy.
Last month's unexpected increase followed a revised 1.1% increase in July, Commerce Department data released Tuesday showed.
Excluding autos and gas stations, sales rose for the fourth consecutive month.
Five of the 13 major sales categories tracked in the report increased, while others, including electronics and appliances, clothing and furniture, declined. Falling prices at gas stations have exacerbated the decline in sales at gas stations.
The better-than-expected reading reflects solid household demand despite recent signs of job and wage growth plateauing, and traders are expecting the Federal Reserve to deliver a long-awaited interest rate cut after its policy meeting on Wednesday.
