US Retail Sales are on the rise. In September, retail sales saw their biggest increase in the last two years, jumping up by about 1.6 percent according to the US Commerce Department. Experts say this growth has likely been fuelled by reconstruction and cleanup efforts in the aftermath of both Hurricane Irma and Hurricane Harvey, meaning the growth could be an anomaly that is the product of market volatility as opposed to the start of a long-term trend of dramatic growth in sales.

The hurricane has driven up the demand for building materials and motor vehicles as people sought to repair homes and replace cars as well as a host of other goods damaged by the hurricanes. For example, sales at gardening retail stores and building material stores also increased significantly last month, growing by an estimated 2.1 percent. Sales for gasoline also increased considerably, with a 5.8 increase in sales at service stations, which was the largest increase reported since February 2013. However, it should be noted that sectors less significantly influenced by the hurricanes – such as clothing and electronics – did not see such high levels of growth.

While this level of growth in retail sales is unlikely to be sustained in the long term, it is a good sign. It is an indication of an increasingly healthy macroeconomic picture, which analysts says is characterized by resilience in the labor market as well as increased consumer spending. Gross domestic product (GDP) expanded in the third quarter by about 2.6 percent. This is expected to increase to 2.9 percent in this year’s final quarter. Moreover, wages have risen at a quicker pace than prices over the past few months, while consumer confidence reportedly continues to increase.

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