US retail sales increased 0.1% in August, compared with a 0.4% increase

Jessica Rinaldi | Reuters

A woman pulls caddies into the alley of a Target store in Torrington, Connecticut.

US retail sales recorded the weakest gain in six months in August as consumers reduced their purchases of motor vehicles and clothing, but upward revisions to July data

The Commerce Department said Friday that retail sales edged up 0.1% last month, the smallest increase since February. Data for July were revised upwards to show that sales increased 0.7% instead of the previously reported 0.5% gain.

The modest increase in retail sales suggests that high gasoline prices could lead to lower spending in other categories. Economists polled by Reuters had forecast that retail sales would rise 0.4% in August.

Retail sales in August were up 6.6% from a year earlier.

Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.1% last month, after a 0.8% surge in July, revised upward. These so-called basic retail sales most closely correspond to the consumption expenditure component of the gross domestic product.

Basic retail sales are already up 0.5% in July. Despite the unexpected slowdown in basic retail sales in August, consumer spending continues to be supported by a tightening labor market, which is leading to a steady rise in wages.

Annual wage growth grew at its fastest pace in more than nine years in August, and there was a record 6.9 million job vacancies in July. Expenditures are also supported by tax cuts and greater savings.