Retail Sales continue to be strong even as prices are rising. As stated by Axios:
The strength of retail sales data has shocked prognosticators for the second month in a row.
Although September spending was lower than the peaks reached in the post-vax, pre-Delta variant honeymoon economy of the spring, consumers still spent more defiantly than economists had expected.
What’s new: Total retail sales grew 0.7% in September from the prior month, compared with consensus estimates for a decline of 0.2%, according to government data out Friday.
The same thing played out in August when sales gushed in at a revised 0.9% increase relative to expectations for a 0.7% decline.
Why it matters: Higher prices helped push up the absolute spending numbers. But inflation or not, consumers were willing to fork over cash, which bodes well for the Q4 economy and the coming holiday shopping season.