US retail sales record a sharp increase in auto purchases in August, but most stores are registering declines

What happened: Sales at auto dealers jumped 1.8%, the largest increase in five months.

The relatively high level of car sales suggests that consumers still have confidence in the economy. Purchases of large items generally decline when the economy slows down or Americans worry about their jobs.

Sales also increased 1.6% at Internet retailers and 1.4% at home and garden centers such as Home Depot and Lowe's.

It is clear that Internet stores suffered little from the drop after a sales surge in July, when Amazon held its annual Prime Day and its competitors try to keep pace with their own deals.

Sales at gas stations fell by almost 1% in August, at the end of the summer driving season, but it's good for consumers. The less they have to spend on gas, the more they can save or spend on other goods and services.

More generally, retail spending was weak last month. Restaurants, department stores and clothing retailers also experienced a decline in sales of about 1%. And sales plunged into grocery and furniture stores.

Retail sales in July and May, for their part, were slightly stronger than those originally announced.

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Big picture: The economy slowed down in 2019 partly because of the trade war with China and its depressing effects on the rest of the world. Exporters such as farmers and major manufacturers were particularly affected, resulting in lower investment and production by local firms.