WASHINGTON (AP) -- Americans stepped up their spending on cars, restaurant meals, groceries and clothing in August, suggesting that consumers will help sustain U.S. economic growth despite a broader global slowdown.
The Commerce Department said Tuesday that retail sales rose 0.2 percent last month, after advancing 0.7 percent in July. Sales have increased 2.2 percent over the past 12 months, as solid hiring has translated into surges in spending at auto dealers and dining establishments.
"There was more spending on `wants' last month" such as eating out, sporting goods and electronics, said Jennifer Lee, a senior economist at BMO Capital Markets. "These are areas that suggest consumers are ready and willing to splurge a little on items outside of the basic necessities."
Retail sales have been fed this year by solid and steady job gains. The hiring - 2.9 million additional jobs over the past 12 months - has translated into a surge of spending at auto dealers and restaurants. The U.S. economy has become increasingly reliant on consumer spending to maintain growth as Europe and China have struggled to expand at a faster pace.
