US retail sales miss forecasts slightly in August

US retail sales volumes decreased by 0.3% month-on-month in August to reach $456.3bn, according to the Department of Commerce.

Economists had penciled in a dip of 0.1% month-on-month.

Excluding sales of automobiles and parts they slipped 0.1% over the month (consensus: 0.3%).

In comparison to a year-ago, retail sales were 1.9% stronger.

Sales of motor vehicles and parts fell by 0.9% versus July - albeit after jumping by 1.7% in the previous month - and those of gasoline stations by another 0.8%.

Weakness was also especially apparent in sales of building materials and sporting goods, both of which registered drops of 1.4% when compared to July.

"Overall, these are sluggish numbers, but we expect no further deterioration - income growth is still quite strong, and confidence is high - and third quarter consumption is still on course to rise by about 3%. Remember, retail sales account for only about 45% of consumption; spending on services is much less volatile," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note sent to clients.