Retail sales rise a better-than-expected 1.2% in August after shoppers pulled back spending in July

NEW YORK (AP) — Consumers stepped up their spending at a better-than-anticipated pace in August after an unexpectedly sharp pullback in July.

Retail sales rose 1.2% last month after recording a revised 0.5% dip in July, according to Commerce Department data released Wednesday.

The decline in July was notable because there had been few signs of fatigue from U.S. consumers. Americans spent heavily during the World Cup and Amazon Prime Day sales this summer. That followed heavy retail traffic in April and May as Americans dipped into their government tax refunds.

Excluding business at gas stations, retail sales rose 1.1% in August. The government figures aren’t adjusted for inflation.

Sales at clothing and accessories stores were up 0.7%, while furniture and home furnishings stores saw a 0.9% increase. Online retailers registered a 2.6% gain.

The data offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. But the lone services category – restaurants – registered a 1.2% gain.

Many Americans continue to spend despite skyrocketing gas prices that have accompanied renewed fighting in the Middle East. The average price for a gallon of regular gasoline rose overnight to $4.37 on Wednesday, according to motor club AAA. That is about 47% more than a gallon cost before the war began, when it cost less than $3.