SHOP - Here's Great News for Shopify Shareholders
2023-10-20 09:15:00 ET
Despite inflation, hiked interest rates, and a busted housing market, the American consumer has remained surprisingly resilient. The Consumer Price Index, the standard metric for inflation, rose 3.7% in September. This was on par with the August increase, and slightly lower than August when taking out food and energy prices.
But retail spending is strong, and so is e-commerce, which is great news if you own shares of Shopify (NYSE: SHOP) , the popular platform for online stores.
According to data for the month of September, retail spending increased 0.07% from August and 3.8% from last year -- outpacing inflation. These numbers will impact the Federal Reserve's decision whether or not to hike interest rates again when it meets in a few weeks. The purpose of raising interest rates is to curb spending, thus reducing inflation. And if done correctly, it can achieve its goals without causing a recession.
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Here's Great News for Shopify Shareholders