U.S. retail sales came in stronger than expected, suggesting consumers are still spending despite higher rates and lingering price pressures. Economists said the details matter: discount retailers and value categories continued to capture market share.

Businesses reported that demand remains steady for essentials and experiences, while big-ticket purchases are more sensitive to financing costs. Some analysts said the data may complicate expectations for near-term rate cuts.

Households appear to be balancing higher costs by seeking promotions, switching brands, and prioritizing purchases that feel urgent or meaningful.