Americans stepped up their purchases at retailers last month as low unemployment, steady pay gains and rising stock and home values helped sustain their willingness to spend despite higher prices.
Retail sales rose 0.4% from August to September, the Commerce Department said Thursday, up from 0.1% the previous month and the third straight increase. Online retailers, restaurants, and grocery stores all reported higher sales.
Sales at gas stations fell due to lower pump prices. The retail sales figures aren’t adjusted for inflation, and the prices of goods fell slightly last month.
With the presidential election in its final weeks, Thursday’s figures provided the latest sign that household spending is fueling a steady economic expansion even while inflation has cooled. “Retail sales came in well above expectations and continue to defy the ‘weak economy’ thesis,” says Quincy Krosby, chief global strategist for LPL Financial, a wealth management firm.
Restaurant sales jumped 1% from August to September, a sign that many Americans remain confident enough in their finances to boost their discretionary spending. Rising sales at sporting goods outlets point in the same direction.
Clothing store purchases leapt 1.5% last month, though sales at electronics and furniture stores dropped.
