Consumer spending remains strong despite higher interest rates.
American consumers continue to spend despite economic headwinds, with retail sales exceeding expectations.
The Data
- Retail sales growth: 0.7% month-over-month (expected 0.3%)
- Online sales: Up 1.6%
- Restaurants: Strong 1.0% gain
Consumer Resilience
Despite higher interest rates and persistent inflation concerns, consumers are opening their wallets:
- Strong labor market: Unemployment at 3.7%
- Wage growth: Outpacing inflation for 6 months
- Holiday optimism: Black Friday broke records
Sector Winners
Retailers benefiting most from the spending boom:
- Amazon: E-commerce dominance continues
- Walmart: Value proposition resonating
- Home Depot: Home improvement demand steady
What It Means
A strong consumer is the backbone of the US economy. This data suggests:
- No imminent recession
- Corporate earnings support
- Potential for continued market gains
The American consumer remains undefeated.