U.S. Retail Sales Surge Amid Economic Resilience

Retail sales in the U.S. rose unexpectedly in September, boosted by lower gasoline prices, robust income growth, and consumer spending at restaurants, clothing stores, and online platforms. Despite a resilient economy, the Federal Reserve is expected to continue cutting interest rates, even as jobless claims show mixed signals.

U.S. retail sales witnessed a notable rise in September as decreased gasoline prices left consumers with more disposable income, prompting increased spending at restaurants and bars. This uptick supports the view of sustained economic growth in the third quarter.

The Commerce Department reported an unexpected increase in retail sales, largely driven by sharp rises in clothing and miscellaneous store receipts. Consumers also boosted online and health store purchases, which were underpinned by steady income growth and solid household finances.

Economists note that despite economic resilience, the Federal Reserve is likely to proceed with interest rate cuts, as indicated by the strong September consumer spending. Retail sales saw a 0.4% rise last month, surpassing expectations, while gasoline prices fell significantly, adding to disposable income.

(With inputs from agencies.)