September retail sales increased by 0.7%, surpassing Wall Street’s forecast.

Sales excluding vehicle and gas rose by 0.6%, above Bloomberg’s 0.1% forecast.

The Commerce Department’s September report showed consumer spending strength despite the Federal Reserve’s interest rate hike.

Miscellaneous store sales led all categories, while electronics and appliance retailers and clothes sales fell 0.8%.

Resilient consumer spending helped keep the US out of recession in 2023.