Americans across the nation opened their wallets in August spending their hard earned money on automobiles and a range of other goods, including back-to-school items. Retail Sales rose by 0.6% last month, above the 0.3% recorded in July, which was revised from 0.0%. The report signals that the economy continues to recover after the weak readings from the beginning of the year.
Consumer Sentiment hit a 14-month high this month, in a survey done by the University of Michigan showing a rate of 84.6, up from the previous reading of 82.5. The surveys gauge of consumer expectations rose to 75.6 from the 71.3 reading last month and above a forecast of 73.0. The uptick in Consumer Sentiment was one of the reasons for the rise in Retail Sales as consumers feel more confident about the economy.
The price for oil continues to fall after a ramp in supplies pushing the price to lows not seen in over a year. The recent drop has pushed prices at the gas pump lower as the national average price for a regular gallon of gasoline is at $3.41, down nearly 4% from this time last year. Prices usually fall this time of year after the summer driving season, but with the large supply of oil on the market, AAA predicts a 15 to 20 cent drop by Halloween. The drop in gas prices puts extra cash in the consumers pocket, which could be used on the upcoming shopping seasons.