US Retail Sales Beat Expectations in September, Core Retail Sales Rise Solidly

US Retail Sales Beat Expectations in September, Core Retail Sales Rise Solidly

US retail sales increased more than expected in September, suggesting a strong end to the third quarter for the economy. The Commerce Department reported a 0.7% rise in retail sales, exceeding economists’ forecast of a 0.3% increase. Higher purchases of motor vehicles and spending at restaurants and bars drove the growth. However, headwinds are rising for consumers, including higher interest rates leading to credit card delinquencies. Despite these challenges, consumer spending remains strong due to a tight labor market and excess savings accumulated during the pandemic. Core retail sales, which closely correspond with consumer spending, rose 0.6% in September.

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TIS Staff

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