Retail Sales Show August Increase

Why it matters locally: An increase in federal interest rates could influence lending costs for consumers and businesses in Arkansas, potentially impacting the state's economic activity across various sectors.

Retail sales in August increased by 1.2%, surpassing economists' expectations. This growth in consumer spending occurred as the Federal Reserve prepared for its first short-term interest rate increase in three years. The central bank has indicated its intention to raise rates as a measure to address inflation. The Federal Reserve's decision is anticipated to occur this Wednesday.