Buyers Keep Spending Despite Rising Prices and Supply Chain Problems | Connecticut News
The prices of consumer goods are rising in the United States, and tangled supply chains make it harder for buyers to always get exactly what they want. But these factors are not yet slowing down American buyers.
Consumers continue to purchase sporting goods, clothing, furniture and groceries and spend in bars and restaurants, Commerce Department data showed on Friday.
Retail sales in September rose 0.7% from the previous month, beating economists’ forecasts for a decline of 0.2%. Retail sales in August were also revised up to a monthly increase of 0.9%, up from a previous estimate of 0.7%.
The data is promising signs of consumers heading into the winter and the holiday shopping stretch for retailers, despite higher prices, shortages and cases of Covid-19.
âConsumer spending has been remarkably resilient throughout [the pandemic], especially on commodities, âTed Rossman, senior industry analyst at CreditCards.com, said in an email to clients on Friday. âMany Americans have already started their holiday shopping and retailers should have a good holiday season.
Sales at sporting goods, hobby and musical instrument stores jumped 3.7% in September from the previous month. Sales of clothing stores and furniture stores increased 1.1% and 0.2% respectively. Online sales increased 0.6%.
Auto sales rose 0.5% in September, even as computer chip shortages and auto plant closures stifled some of the vehicle supply. US automakers have reported a decline in new car sales.
Although the data has beaten expectations, some economists are still warning that supply chain disruptions and inflation could hold back some buyers in the coming months.
“With commodity shortages likely to persist and the resulting spike in prices weighing on real incomes, we expect consumption growth to remain subdued,” said Andrew Hunter, senior US economist at Capital on Friday. Economics, in a note to clients.
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