Retail sales jumped up in September above what economists expected, illustrating the strength of the American consumer.
Americans are still spending, despite the elevated cost of borrowing and high prices, as U.S. retail and food services sales were above what analysts expected in September, hitting nearly $705 billion, U.S. Census Bureau data showed on Tuesday.The rise of retail sales, by 0.7 percent last month from August, beat the 0.3 percent rise that economists had expected, according to a Reuters poll.Food services and drinking places saw sales go up 9.2 percent from September 2022, the Census Bureau said.
The jump in retail sales ahead of the Federal Reserve meeting at the end of October complicates their decision further on whether to hike rates in their battle against high inflation. Policymakers have been raising rates since March 2022 to slow the economy with the expectation that the rise in borrowing costs would discourage more spending and eventually reduce price rises.
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