U.S. retail sales unexpectedly rose in September in part as more expensive motor vehicles boosted receipts at auto dealerships, but there are fears that supply constraints could disrupt the holiday shopping season amid continued shortages of goods.

Given the partial lift from inflation, the surprise increase in retail sales reported by the U.S. Commerce Department on Friday did little to change economists’ expectations that consumer spending probably stalled in the third quarter. Inflation-adjusted sales, which rose moderately last month, are what is included in the calculation of gross domestic product.

“The solid retail sales report reflects both consumer resilience and escalating prices,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “The main concern now is that supply-chain disruptions and microchip shortages appear to be spreading, limiting selection and tamping down goods demand.”

Retail sales rose 0.7 percent last month. Data for August was revised higher to show retail sales increasing 0.9 percent instead of 0.7 percent as previously reported. Economists polled previously had forecast retail sales would slip 0.2 percent. Consumer prices increased 0.4 percent on a monthly basis in September suggesting the so-called real retail sales rose 0.3 percent last month.

An ongoing global shortage of microchips is forcing automakers to cut production, leading to a scarcity of inventory at showrooms, which is boosting prices. The semiconductor shortage has also impacted the supply of electronics and appliances. Congestion at ports because of a dearth of workers has also meant fewer goods on shelves heading into the holiday shopping season.

U.S. spending remains strong despite consumer sentiment shifting lower, thanks to strong household wealth and rising wages from a tightening labor market. (SD-Agencies)