US retail sales showed surprising strength during the back-to-school season – a sign that Trump’s tariffs haven’t yet cowed shoppers as the Federal Reserve weighs a decision on cutting rates.

Excluding cars, retail sales rose 0.7% in August from the previous month– far above estimates of a 0.4% rise, the Commerce Department said Tuesday. Overall retail sales increased 0.6%.

The upbeat report defied projections of a spending slump last month as hiring slowed and inflation picked up. Consumers have continued to spend big – even as they note tariffs and economic anxiety as major concerns in sentiment surveys. 3

“Tariff costs and inflation are big concerns for lower and middle-income consumers; the weakness of grocery sales is probably a sign that these consumer groups are retrenchin

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