NEW YORK (AP) — Americans continued to spend at a solid clip in September even while facing sticker shock in grocery aisles, car lots and restaurants as snarled global supply chains slow the flow of goods.
Retail sales rose a seasonally adjusted 0.7 percent in September from the month before, the U.S. Commerce Department said Friday.
That was a stronger showing than expected. Yet there are lingering concerns as to how resilient shoppers will be if prices continue to head north and shortages lead to frustration heading into the crucial holiday season.
Consumer spending drives about 70 percent of all U.S. economic activity and a sustained recovery from a pandemic-induced recession will require their participation.
There is no evidence Americans are pulling back, however, and spending last month was heavy everywhere, from clothing, sporting goods and toy stores to car lots.
“They are coming to enjoy the experience with their families that they hadn’t been able to do in a long time,” said Tiffany Markofsky, chief communications officer at a small toy store chain called Camp.
Camp is reporting strong traffic in stores and has been able to secure popular toys through close ties with its suppliers, Markofsky said.