For August retail rose again, .6%, and if you remove the volatile auto sector it was up .7%. This makes for several months in a row where consumers opened their wallets. This has driven the economy up from a very low level despite continued COVID rolling shutdowns, and partial opening. The consumer in the U.S. has always been the driver of the economy and as they get back to work they seem to be willing to spend. It helps that lower interest rates are producing a boom in refinancing and new purchases. Homebuilders’ optimism is at its highest level in 35 years. Boat buying surged more than 400% telling us that those with jobs have confidence.
With new treatments showing strong promise from Eli Lilly, and a vaccine fast approaching we may yet see another boom in the economy. Time will tell.