People have money 💵

They have lots of it, and they're spending it 🛍

Retail sales continue to beat expectations and rise. (Source: @USCensusBureau)

Once again, people seem surprised by the strength of the American consumer.

According to Census Bureau data released Thursday, retail sales in August increased by 0.6% to a record $697.6 billion. Higher energy prices played a significant role, as gas station sales jumped by 5.2%. But even if you exclude autos and gas, which can be pretty volatile over short-term periods, retail sales still rose by 0.2%. Most retail categories grew, including clothing, electronics, health and personal care, grocery, and restaurants and bars.

The “American consumer remains absolutely resilient,“ RSM US’s Joseph Brusuelas tweeted about the report.

By most measures, the August results beat economists’ expectations. A quick Google search for news on retail sales will tell you as much.

In recent weeks and months, there have been a few signs that consumer finances may be getting more stretched. Excess savings have been dwindling and credit card balances have been on the rise.

HOWEVER, there’s been very little to suggest consumer finances are actually strained.

While excess savings — a concept that was very relevant in the early phases of the economic recovery — are shrinking, more comprehensive measures of household finances remain unambiguously strong.