U.S. retail sales unexpectedly rose in August, suggesting that consumer demand in the U.S. may still be robust, adding new evidence for a soft landing of the U.S. economy.

However, will this prevent the Federal Reserve from cutting interest rates significantly on Wednesday this week?

On Tuesday, September 17th, the U.S. Census Bureau released data showing that U.S. retail sales increased by 0.1% month-on-month in August, better than the expected decline of 0.2%, and the July data was revised up by 0.1 percentage points to 1.1%.

Core retail sales (excluding automobiles) increased by 0.1% month-on-month, lower than the expected growth of 0.2%; excluding automobiles and gasoline, retail sales in August increased by 0.2% month-on-month, less than the expected 0.3%, but marking a fourth consecutive month of growth.

Compared to the same period last year, the year-on-year growth rate of retail sales in August slowed to 2.1%, and core retail sales excluding automobiles grew by 3.9% year-on-year, with a slight rebound in growth rate.

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After the data was released, the U.S. dollar index rose by about 10 points in the short term, and U.S. stock futures, U.S. bonds, and gold spot prices did not fluctuate significantly.

The market's expectations for a significant interest rate cut this week remain strong, with the CME FedWatch Tool showing that the possibility of a 50 basis point cut is still at 67%, with no significant change from before the retail data was released.

Looking at the sectors, the August retail data was mainly supported by online retailers and healthcare, with retail sales increasing by 1.4% and 0.7% month-on-month, respectively.

Sales of online retailers (adjusted) reached a historical high.

Electronics and automobiles both shrank, with retail sales declining by 1.1% and 0.1%, respectively, and sales of furniture, apparel, and food and beverage all declined by 0.7%.

After a surge last month, automobile sales (adjusted) were essentially flat month-on-month, with a decline in used car prices partly supporting sales.