American consumers kept shopping in September despite rising prices, supply chain disruption, the Delta variant and the end of enhanced unemployment benefits.
Core retail sales in September rose 0.7 per cent, according to the National Retail Federation, whose calculations excludes automobile dealers, gasoline stations and restaurants. Analysts had expected September sales to decline 0.2 per cent.
Compared with a year ago, sales were up 11 per cent, the NRF said. For the first nine months of the year, sales increased 14.5 per cent over the year-ago period, which is in line with NRF’s revised 2021 sales forecast.
The increases in September were across all but two sectors and led by clothing, electronics and general merchandise stores. The only two sectors to experience declines were electronics stores and beauty and personal care stores.
“The reopening of the economy was interrupted by Covid-19 and consumer spending other than retail hit a speed bump toward the end of summer,” NRF Chief Economist Jack Kleinhenz said. “Consumers remained active, but retail sales didn’t reflect as much of a shift away from goods to services as expected. That was a plus for retail because consumers still have a hyper-ability to spend thanks to wage and job gains and the household savings built up during the pandemic.”
