Prices and interest rates were both up, and there’s still a fear of a potential looming recession, but that didn’t appear to slow American spending much last month.
According to statistics reported by the Commerce Department this week, retail sales rose 0.7% in September. That’s more than twice what economists had expected, and also rivals the revised 0.8% hike in August. Retail sales in August were inflated after gasoline prices spiked, however. That was not the case in September when gas prices began to ease, according to a report in The Associated Press.
A closely watched category of retail sales that excludes auto dealers, gas stations and building materials and feeds into the gross domestic product jumped 0.6% last month compared to the prior month, the AP reported.
September’s rise in retail sales was the sixth consecutive monthly gain and reflects how the U.S. economy has remained resilient despite attempts by the Federal Reserve to cool spending and hiring.
Spending at restaurants was up 0.9%, while spending online rose 1.1% last month, according to the report. Sales at general merchandise stores rose 0.4%, while business at grocery stores rose 0.4%. Sales at home furnishings and furniture stores remained unchanged, while electronics stores saw a 0.8% decline.
Consumer prices were up 0.4% from August to September, below the previous month’s 0.6% pace. The report from the Labor Department also showed that year-over-year inflation was flat last month from a 3.7% rise in August, the AP reported.
