US retail sales rose 0.6% in February to $738.4 billion
US retail sales climbed 0.6% in February to $738.4 billion, beating expectations and bouncing back after a dip in January.
Even with inflation and higher borrowing costs, people are still spending: sales are up 3.7% compared to last year, which signals that shoppers aren't slowing down just yet.
Spending could delay Federal Reserve cuts
Most of the growth came from online shopping, car dealerships, clothing stores, and restaurants.
This spending streak helped balance out drops in furniture sales (thanks to a sluggish housing market) and less money spent at gas stations due to cheaper fuel.
The steady demand could make things tricky for the Federal Reserve: if people keep spending like this, it might delay any plans for lowering interest rates since inflation could stick around longer than hoped.