WASHINGTON (AP) — Americans sharply boosted their spending last month, pushing up retail sales and giving the economy a lift. Much of the gain reflected the fact that shoppers are also paying higher prices.
Retail sales rose a seasonally adjusted 1.7% in October from September, the U.S. Commerce Department said Tuesday. That’s up from 0.8% in the previous month.
Solid hiring, strong pay raises, and healthy savings for many households are underpinning robust spending. Americans are also still buying more cars, furniture, and other goods than they did before the pandemic, which is overwhelming U.S. ports and shipping firms and pushing up prices.