WASHINGTON, (Reuters) – Despite the surprise increase in retail sales for September in the United States, there are concerns that supplies constraints may disrupt holiday shopping seasons due to continued shortages of goods and motor vehicles.

Commerce Department Friday reported that retail sales increased by 0.7%. The Commerce Department reported that August data was updated to reflect retail sales growth of 0.9%, rather than 0.7%. Prices were partially responsible for the rise in retail sales.

Reuters polled economists to forecast a 0.2% decline in retail sales.

A global shortage of microchips has forced automakers to reduce production. This is leading to an increase in prices and limited choice for buyers. A lack of workers means that other goods may be in short supply.

The President Joe Biden declared Wednesday that Los Angeles and Long Beach would expand round-the clock operations to help unload the estimated 500,000 container cargoes awaiting their arrival at the port.

The COVID-19 pandemic caused spending to shift from goods to services, putting pressure on supply chains. A resurgence of coronavirus infection over the summer has slowed this rotation back towards services such as travel and dining out.

The majority of retail sales is made up of goods. However, services such as healthcare and accommodation make up the rest. Retail sales reports do not include bars or restaurants.

Sam Bullard, senior economist at, stated that “while visits to retail and restaurants have not yet broken out of their late-summer plateau, high frequency card transaction data suggests that spending remains solid.” Wells Fargo Charlotte, North Carolina (NYSE:).

Retail sales increased 0.8% in September, after a 2.6% upwardly revised August increase. Core retail sales are closely related to the gross domestic product’s consumer spending. In August, they were estimated to have risen 2.5%.

After a strong 12.0% annualized pace of growth during the April-June quarter, economists think consumer spending almost stagnated in the third quarter. For the third quarter, consumer spending growth is estimated at around 2.0%.

Slower consumer spending suggests that GDP growth slowed sharply from 6.7% in the second quarter. Atlanta Federal Reserve predicts that the economy will grow at 1.3% in the third quarter.

The government will provide a snapshot of third quarter GDP growth by the end the month. The fading stimulus of trillions of dollars of government pandemic relief has contributed to some of the expected slowdowns in growth.

The economy’s foundation and consumer spending are solid thanks to large savings and tightening labor markets that have boosted wages. Second quarter savings rates increased by 10.5%. End August saw 10.4 Million job openings.

“Officially, strong job growth and a higher savings rate should provide consumers the ability to spend after what appears like a pause during the third quarter when the Delta variant spreads and the fiscal economic impact payments diminished,” explained Kevin Cummins (NYSE) chief U.S. strategist at Natwest Markets Stamford.