Retail Sales Unexpectedly Rise in September , Despite Supply Chain Issues.
Inflation is at all-time highs and global supply chain issues persist.
Inflation is at all-time highs and global supply chain issues persist.
But even with extended unemployment benefits lapsed and grim third-quarter outlooks, spending continues to rise.
Recent consumer reports show Americans spending at higher and faster rates, surpassing expectations.
Retail sales saw an increase of 0.7% in September.
Over the last year, retail sales have risen 13.9% in total.
Students heading back to school and workers returning to the office are likely the catalysts for the increased retail sales, Natal Koylyar, national leader BDO's retail and consumer procducts practice, via interview with CNBC.
Music and book stores experienced increased sales, rising 3.7%.
Food service spending is up 0.7%, though restaurants only saw an increase of 0.3%, indicating fears of the coronavirus remain.
But economists say these trends in spending are unsustainable.
Spending may see some renewed strength over the next couple of months, as virus cases continue to drop back... But with goods shortages likely to persist... we expect consumption growth to remain subdued, Andrew Hunter, Capital Economics senior economist, in a note to CNBC.
Experts worry that worsening supply chain issues will put a wrench in this year's holiday shopping season.
.
With cargo ships backed up along the coast of California, President Biden is asking ports to operate around the clock to mitigate potential economic disaster.
Retailers encourage consumers to do their holiday shopping as soon as they can.