Sales at U.S. retailers rose 0.6% in August despite a hangover for Internet stores after the Amazon Day sales event, but most of the increase was tied to higher gasoline prices.

Sales had been forecast to rise just 0.1% last month after a much larger gain in July, when Amazon (AMZN) recorded its biggest day of sales ever. Other retailers also held sales and saw strong activity that month.

Retail sales represent about one-third of all consumer spending and usually offer clues on the strength of the economy.

While consumer spending has been surprisingly strong this year, higher interest rates and a slowdown in hiring are expected to restrain purchases in the months ahead. Forecasters predict the holiday shopping season could be the weakest in five years.

Before the report, the Dow Jones Industrial Average and S&P 500 were set to open higher in Thursday trades.

Source : Bloomberg