US Shoppers Spent 1.2% More in August. The Part That Wasn't Gasoline Is the Surprise.
- US retail and food services sales rose 1.2% in August 2026 to $773.9 billion, beating forecasts. July was revised to -0.5%.
- The control group, which feeds into GDP and excludes autos, gas, building materials and restaurants, rose 1.4%, its strongest gain since September 2024.
- Adjusted for inflation, sales rose about 0.8% (TD Economics).
- Gas stations +3.1%, online retailers +2.6%, restaurants and bars +1.2%, autos +0.6%.
- Year over year, retail sales are up 6.0% against CPI inflation of 3.4%.
The beat
US retail sales rose 1.2% in August to $773.9 billion, well ahead of forecasts. The report came out on Fed decision day and got buried under the rate hike.
The easy explanation is gasoline, since prices were up 27.4% from a year earlier. And gas station sales did rise 3.1%. But the categories that exclude fuel tell a stronger story:
| Category | August change |
|---|---|
| Total retail and food services | +1.2% |
| Ex-autos | +1.4% |
| Control group (ex autos, gas, building materials, restaurants) | +1.4%, strongest since Sept. 2024 |
| Non-store (online) retailers | +2.6% |
| Bars and restaurants | +1.2% |
| Auto and parts dealers | +0.6% |
| Gas stations | +3.1% |
TD Economics estimates sales rose about 0.8% after inflation. That's a strong month by any standard.
How consumers are paying for it
Here's the catch. In our piece on July's consumer data, the US personal savings rate had fallen to about 3%. That's low by historical standards. When spending rises faster than income, the gap comes from saving less, borrowing more or drawing down savings.
TD put it plainly: "headwinds are mounting." Treasury yields near 5% mean more expensive auto loans, mortgages and credit card balances. Energy prices take a bigger share of every paycheque. And the Fed just raised rates again.
A strong August can be real and still hard to repeat.
Reading this as an investor
Consumer discretionary stocks (retailers, restaurants, travel, e-commerce) benefit from months like this. Online retailers stood out at +2.6%, which fits the long shift to e-commerce.
Watch margins, not just sales. Revenue can rise while profit shrinks if companies absorb higher freight, energy and tariff costs. Last month we covered how some retailers were booking tariff refunds as earnings, which flattered the numbers.
Consumer staples (groceries, household goods) tend to hold up better if spending slows. Discretionary names tend to fall harder. A portfolio that holds both is less exposed to guessing which way the next month goes.
Canadian angle: the US consumer buys a huge share of Canadian exports, from lumber to autos to energy. A resilient US shopper supports Canadian exporters even as trade barriers rise.
The honest uncertainty
Retail sales are revised, sometimes heavily, and one strong month after a weak July may partly reflect timing. The real test comes over the next quarter, when higher rates and energy costs have had time to work through household budgets. For now, the American consumer is still spending, just with a thinner cushion than before.
Frequently asked questions
How much did US retail sales rise in August 2026?
Retail and food services sales rose 1.2% month over month to $773.9 billion, beating expectations and reversing a 0.5% decline in July. Excluding autos, sales rose 1.4%. The control group also rose 1.4%, its strongest gain since September 2024.
What is the retail sales control group?
It's retail sales excluding autos, gasoline stations, building materials and food services. Economists watch it because it feeds directly into the consumer spending part of GDP and strips out the most volatile, price-driven categories.
Was the August retail sales jump just higher gas prices?
Only partly. Gas station sales rose 3.1%, helped by higher prices. But the control group, which excludes gas, rose 1.4%, and TD Economics estimates inflation-adjusted sales rose about 0.8%. The underlying demand was real.
What does strong retail spending mean for consumer stocks?
It supports near-term revenue for retailers, restaurants and e-commerce companies. The risk is sustainability. The US personal savings rate fell to about 3% in July, so spending growth is increasingly coming from saving less rather than earning more, and higher rates and energy costs are squeezing budgets.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Sep 18, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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