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Despite higher gas prices, the American economy still going strong

Despite higher gas prices, the American economy still going strong


Despite higher gas prices, the American economy still going strong

WASHINGTON — Despite higher gas prices, a slew of economic data released Thursday shows consumer resilience is powering solid U.S. economic growth.

Workers are enjoying an unusual degree of job security despite scattered layoffs, which likely encourages spending.

Retail sales rose a solid 0.8% from August, more than economists had forecast. The increase was driven by a 6.4% jump in spending at gas stations, but consumers also spent elsewhere, including a healthy 1.1% rise at restaurants and bars.

Excluding gas, retail sales rose just 0.2% last month, with much of that also reflecting higher prices.

Economists say that as long as unemployment stays low and Americans continue working, spending will likely stay resilient. 

Another report Thursday showed that the number of people seeking unemployment benefits stayed below 200,000 last week, a historically low figure.