Overall inflation in August accelerated for the second month in a row after gasoline prices soared from the previous month but core inflation slowed to the lowest pace in nearly two years.
Seasonally adjusted sales, but not for prices, rose in July from the previous month and from the year earlier after consumer spending held up despite rising prices and multiple rate hikes.
Consumer price inflation accelerated in July but core inflation edged slightly lower after wages and food prices rose at a slower pace but shelter costs rose at elevated levels.
GDP expanded at a faster pace in the second quarter, driven by business investment and resilient consumer spending despite elevated prices. Much of the economy is escaping the sharp increase in interest rates over the last sixteen months.
New orders for durable goods rose at the fastest pace in June from the previous month in nearly three years after demand for transportation equipment and aircraft soared.
Retail sales, unadjusted for inflation, advanced 0.2% in June, indicating resilient consumer spending. Core retail sales, which excludes larger and one time items, rose at a faster pace of 0.6%.
Leisure and hospitality sector led job gains in June followed by notable increases in construction, education and trade and transportation. Still, manufacturing, information and finance sectors reported declines.
The Federal Reserve's policy members deemed appropriate to pause rates in June to assess the economy's progress in achieving maximum employment and price stability after hiking rates multiple times but several members would have supported raising rates.
New orders for manufactured orders increased in May at the same pace in April, driven by transportation orders for large ticket items such as civilian aircrafts, ships and boats.
Personal income and personal outlays in May increased and personal consumption expenditure index, a measure of inflation, slowed from the previous month.
