A hot jobs market is continuing to help boost consumer spending.
Retail sales rose 0.7% in September from the previous month, more than double Wall Street’s estimates for 0.3% growth, according to new data from the Commerce Department released on Tuesday. Retail sales have now grown from the month prior for six straight months, marking a consistent trend of consumer spending.
This, economists say, has been supported by an average of nearly 270,000 nonfarm payroll additions over the same period. With no clear signs of the labor market fully cooling, the strong position of the US consumer entering the fourth quarter of 2023 could provide upside risks to inflation that’s already showing signs of stickiness — and prompt more Fed rate hikes.
Josh Schafer | Yahoo