Retail sales in the US came in stronger than expected in September according to government data released today, supported partly by sales in the auto sector and at fuel stations.
Sales rose 0.7% last month in the world's biggest economy, reaching $704.9 billion, while the pace of growth in August was revised upwards to 0.8%, the Commerce Department today.
While the latest figure marks a slight slowdown, it remains stronger than analysts expected.
US consumption has shown resilience despite higher interest rates, after the Federal Reserve embarked on an aggressive campaign to lower inflation last year.
The Fed lifted the benchmark lending rate rapidly, increasing the cost of borrowing and lowering demand by making it pricier to get funds for big-ticket purchases or business expansion.
In September, retail sales excluding motor vehicles and parts, as well as fuel stations, ticked up 0.6%.
Sales at motor vehicle dealers rose 1.1% from August, while that at gas stations picked up 0.9%.
Analysts have been warning that although the US economy has remained strong in the face of elevated interest rates, it is a matter of time before tighter credit conditions bite.
A key factor is the job market, a "key underpinning of the consumer," said economist Oren Klachkin at Nationwide.
"As long as the job market stays solid and wages continue to rise, we should in turn expect retail sales to be pretty strong, to post positive month-on-month gain," he told AFP.
