U.S. retail sales rose by 1.2% in August, according to Census Bureau data released Wednesday, significantly exceeding the 0.8% consensus estimate. The rebound follows a revised 0.6% decline in July and suggests a broad-based recovery in consumer demand. Purchases across multiple categories highlighted resilient spending despite persistent inflation and elevated borrowing costs.
The upbeat report comes as the Federal Open Market Committee concludes its September meeting later today. Markets are pricing in a high probability of a 25-basis-point interest rate hike to a range of 3.75%-4.00%, which would mark the first increase in over three years. U.S. stock futures edged higher following the release, while Treasury yields remained near cycle highs as investors anticipate a potentially hawkish policy signal from Fed Chair Kevin Warsh.