WASHINGTON, (Reuters) – U.S. retail sales rose more than anticipated in October. This is likely because Americans began their holiday shopping earlier to avoid having empty shelves and due to shortages of certain goods. The ongoing pandemic has given the economy a boost at the beginning of the fourth quarter.

Commerce Department on Tuesday reported that retail sales jumped 1.7% last month. The Commerce Department reported that retail sales rose 0.8% in September, instead of 0.7%. The sales are up for the third consecutive month.

Reuters polled economists to forecast that retail sales would rise 1.4%. The estimates ranged between a 0.1% drop to as high as 2.8% increases.

The October unit motor vehicle sales were up for the first six months in a row. Retail sales rose last month due to tight supplies of automobiles caused by a global semiconductor shortage. Higher gasoline prices also contributed to an increase in retail sales.

The October increase in consumer prices was 0.9%. In October, consumers could have anticipated higher prices by anticipating them and shopping early.

Sam Bullard, senior economist at the University of Texas, stated that “strapped supply and retailers encouraging customers to begin holiday shopping early suggests some spending was likely.” Wells Fargo Charlotte (NYSE:), North Carolina. “Regardless of the challenges retailers face, holiday sales will almost certainly set records for this year.

Coronavirus has been ravaging the country for nearly two years, causing a severe shortage of labor. It delayed both raw material deliveries to factories and finished product shipments to market.

After increasing 0.5% in September, retail sales increased by 1.6%, excluding automobiles, gasoline and building materials. This so-called core retail sale corresponds most closely to the consumer spending portion of gross domestic product.

Most retail sales consist of products, but services such as healthcare and accommodation make up the rest of consumer spending.

Retail sales increased solidly last month even after being adjusted for inflation. This means that consumer spending grew at a rate of 1.6% annually, which is well above what was recorded in the third quarter. A fading threat from an increase in COVID-19 infection rates over the summer is helping to revive economic activity.

This report also highlighted strong October employment growth and an acceleration of services sector activity, painting a positive picture of the economy. GDP grew at 2.0% last quarter, which is the slowest rate in over a year.

Companies scramble for 10.4million open jobs and hiring has been accompanied by a rise in wages. High inflation is destroying some worker’s gains, and helped sink consumer sentiment to a low of 10 years in November.

Economists don’t believe that the University of Michigan reported Friday’s drop in sentiment will affect consumer spending. They point out that sentiment measurements were higher than the pre-pandemic lows. During the pandemic, Americans had at least $2 trillion of excess savings.

Scott Hoyt is a senior economist for Moody’s Analytics (NYSE:) in West Chester. “This continued weakness in confidence does NOT warrant any immediate change in our near-term projections for consumer spending.” Support also comes from strong employment growth and plentiful jobs.