U.S. retail and food services sales rose 1.2% in August from July, beating the 0.8% increase forecast by economists surveyed by Reuters and marking the largest monthly gain since March. Sales totaled $773.9 billion on a seasonally adjusted basis, up 6.0% from August 2025, while July's decline was revised to 0.5% from 0.6%. Broad gains in goods purchases and dining helped drive the result, although a 3.1% increase in service-station sales reflected higher gasoline prices. The data prompted economists to raise third-quarter GDP growth estimates and, alongside a jump in import prices, reinforced the case for a Federal Reserve interest-rate increase. Consumer confidence nevertheless weakened as inflation concerns tied to the Middle East conflict intensified, with the University of Michigan's sentiment index falling to 51.0 in August and year-ahead inflation expectations rising to 4.3%.