While retail sales were flat in September, the so-called core retail sales rose last month due to substantial wage gains and savings. Moreover, core retail sales were also stronger than initially thought in August.
However, overall spending can erode as inflation shows no signs of slowing down and tighter monetary policy begins to weigh more meaningfully. “Consumer staying power may be waning, but it’s showing few signs of breaking,” said Tim Quinlan, a senior economist at Wells Fargo in Charlotte, North Carolina.
