What: Consumption remained strong in August, despite slowdowns in June and July.

Why it is important: As long as the job market remains stable, American customers might keep on spending like there is a tomorrow.

August saw a 0.6% rise in U.S. retail sales, despite downward revisions for June and July, with gasoline prices significantly contributing. This growth indicates a potentially strong GDP for the current quarter, with predictions at a 3.5% annual increase. Despite concerns about high borrowing and reduced savings, consumer spending remains strong, largely fueled by a robust job market. The employment rate, especially among those with less education, has risen, leading to increased spending. While job security concerns exist, they're currently lower than in 2019. If the job market weakens, consumer spending might decline, but for now, confidence in the American consumer remains high.

US consumers remain optimistic after all