Sharply rising food and gas prices are not hurting US discretionary spending just yet. US chain store sales rose 0.4% last week, the fifth consecutive weekly gain, to a new high. Between March 19 and April 23, US chain store sales have jumped 3.3%. In the first 3 full weeks of April, sales are up 0.8%. The 4-week moving average is 2.8% higher than its level 4 weeks ago, +2.9% YoY.

Rising employment, and employment income, coupled with increased savings, are helping support spending.