What's going on?

Walmart reported better-than-expected quarterly earnings on Tuesday, after the US retailer�s loyal customers kept coming back � whether they wanted to or not.

What does this mean?

Shortages of supplies and workers have been pushing up costs around the world, and retailers like Walmart have duly been upping their prices to offset them. And since the company sells products customers need no matter what, it�s in a great position to do just that. That might be why revenue from its existing US stores climbed 9.2% last quarter compared to the same time a year ago � the fastest growth since the second quarter of 2020. Walmart said the current quarter is off to a good start too: shoppers have already started buying holiday gifts in a race to beat shipping delays, which might be why the firm increased its sales outlook for the rest of the year.

Why should I care?

The bigger picture: America�s still spending.
Another major US retailer posted impressive quarterly results of its own on Tuesday: Home Depot�s revenue from existing stores rose by a better-than-expected 6.1% versus the same time last year. Such a strong showing from two of America�s biggest retailers is a good sign, suggesting the country�s still willing to spend even with prices on the up and up. And given that consumer spending is the biggest driver of US economic growth, Tuesday�s results could bode well for the country as a whole.

Zooming out: Santa�s come early.
That�s not the only sign that consumer spending is moving in the right direction: data out on Tuesday showed that US retail sales climbed by a higher-than-expected 1.7% in October versus the month before (tweet this). That�s the third consecutive month of increases, and the biggest jump since March. But economists are reserving judgment: they, like Walmart, think the momentum�s just a result of early holiday shopping.