Retail sales surged toward the end of summer. The U.S. economy has plenty of momentum.

U.S. retail sales jumped in August, marking the largest gain in five months, according to the latest data. The broad-based increase suggests consumers kept spending at a solid pace as summer wound down, adding to evidence that economic activity accelerated late in the quarter.

For markets, the report matters because consumer spending is the largest driver of U.S. economic growth. A stronger-than-expected sales reading can signal resilient demand, which may influence how investors think about corporate earnings, inflation pressures, and the path of interest rates. It also shapes expectations around Federal Reserve policy, since sustained spending could keep inflation from cooling as quickly as hoped.

What to watch next: whether the August strength carries into the fall, how it shows up in upcoming inflation and employment reports, and whether other indicators confirm the same momentum. One month's data is a signal, not a trend — but it is a notable one.