America’s economic engine is still revving, despite fears of a slowdown

Washington CNN  —  A key driver of the US economy remains solid. Spending at US retailers rose 0.1% in August from the prior month, the Commerce Department reported Tuesday. That’s a much slower pace than July’s upwardly revised 1.1% gain, but well above the 0.2% decline economists projected in a FactSet poll. The figures are adjusted for seasonal swings but not inflation. It’s an encouraging sign for America’s economy, since consumer spending makes up two-thirds of US economic output. Retail sales make up a sizable chunk of overall spending. Retail sales is the final major economic data point before the Federal Reserve announces its rate move on Wednesday. Tuesday’s numbers do little to influence the size of the expected rate cut.