Consumer Spending Holds Steady Despite Slowing Job Market

 Retail sales in the U.S. remained strong in August, rising 0.1% from the previous month, according to the Commerce Department. This slight increase, which was adjusted for seasonal factors but not inflation, exceeded economists’ expectations of a 0.2% decline. Additionally, July's retail sales figures were revised higher, further signaling the resilience of consumer spending.

Despite concerns over a slowing job market, consumer spending—a key driver of the U.S. economy—continues to hold up. This metric is closely monitored by both Wall Street and the Federal Reserve, as it accounts for roughly two-thirds of the nation’s economic activity. Any significant reduction in consumer spending could pose a threat to economic growth.

While the job market has softened, with the unemployment rate rising to 4.2% in August from 3.8% a year earlier, fears of an impending recession have been mitigated by steady consumer spending. With the Federal Reserve widely expected to cut interest rates following its two-day policy meeting, analysts will be watching closely for further signals on the future of economic stability.