Key Takeaways Retail sales increased by 0.1% in August, bucking economist projections of a decline but slowing down from July’s pace.The sales report is the last major release before the Federal Reserve's policy-setting committee makes an interest rate decision on Wednesday.

The half-point reduction is expected to kick off a series of reductions extending into 2025, providing relief for prospective car and home buyers.

Sales at retailers rose slightly in August in a sign of resilience among U.S. households, suggesting the U.S. economy is still on solid footing as the Federal Reserve plots to cut interest rates.