The report said retail sales climbed by 0.6 percent in August, matching an upwardly revised increase in July. Economists had expected retail sales to inch up by 0.2 percent compared to the 0.5 percent growth originally reported for the previous month.

Excluding sales by motor vehicle and parts dealers, retail sales grew by 0.7 percent in August after rising by an upwardly revised 0.4 percent in July.

Ex-auto sales were expected to climb by 0.4 percent compared to the 0.3 percent increase originally reported for the previous month.

The stronger than expected ex-auto sales growth partly reflected a 2.0 percent surge in sales by non-store retailers as well as notable increases in sales by clothing and accessories stores and sporting goods, hobby, musical instrument and book stores.

Meanwhile, the report showed a steep drop in sales by miscellaneous store retailers as well as a slump in sales by department stores.

The Commerce Department said core retail sales, which exclude automobiles, gasoline, building materials and food services, increased by 0.7 percent in August after climbing by an upwardly revised 0.4 percent in July.

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