Auto sales rose 0.5 percent in September, for example, despite a semiconductor shortage and delivery delays that have hampered new car sales. The Bureau of Economic Analysis previously reported that automobile sales fell 6.2 percent in September.
Rising fuel costs are also likely to drive up the sales price. Oil prices recently soared to their highest level in seven years amid a global energy crisis, and gas station sales rose 1.8 percent in September. “Since the end of the travel season, I believe that the increase in gas stations has been driven by a rise in prices at the pump,” said Ms. Bovino.
Bank of America analysts said Friday, citing credit card data collected by the bank, that the increase in spending on gasoline, housing, airfare and grocery stores was largely due to inflation.
However, the analysts wrote in a research note that “all other major categories have seen real growth”.
The rise in prices could still weigh on the economy. With prices still rising more than 5 percent year-over-year, in part due to ongoing supply chain disruptions from the pandemic, consumer sentiment surveys show it is deteriorating, which could indicate a slump in spending.
of the Conference Board Consumer Confidence Survey fell in September for the third consecutive month, and preliminary results of the University of Michigan Monthly Consumer Sentiment Survey, released Friday, also showed that confidence fell 1.9 percent to 71.4 in early October. That is the lowest value since 2011.
To alleviate some problems in the supply chain, President Biden announced on Wednesday that the Port of Los Angeles would double its operating hours and large companies like Walmart, UPS and FedEx would be extending their hours to reduce backlogs. The steps come before Christmas time and are designed to fix a traffic jam that has slowed shipping of finished goods from Asia.
The shortages could start to hamper Christmas sales – or prompt consumers to spend early money to stay ahead of the shortages, Ms Bovino said.
“People are willing to spend money, it’s just a question of whether they can find the items.” She said.
