Economists have been warning about a possible recession as the Federal Reserve continues to raise interest rates. However, companies like Soergel Orchards in Pennsylvania are experiencing a boom in consumer demand.

Sales are increasing, even with rainy weekends affecting attendance at their fall festival. The demand for their products, such as gourds and cornstalks, is high. The owners are also expecting a strong season in their Christmas decorations store.

This unexpected consumer demand is contributing to the overall growth of the economy, which expanded at a rate of 4.9 percent in the third quarter. This defies the widespread expectations of a slowdown.

The strong consumer demand raises questions about why the economy is still growing rapidly despite the Fed’s efforts to slow it down. It also raises concerns about how long this upswing will last.

Although the Fed has increased interest rates, making borrowing more expensive, employers continue to hire and families continue to spend.

As the holiday shopping season approaches, it is difficult to predict what will happen next. A strong job market and cooling inflation could give consumers the ability to keep driving the economy forward. However, companies are cautious about building up too much inventory or making overly optimistic sales predictions, as higher borrowing costs and inflation may make Americans more frugal.

The holiday shopping season will have an impact on the Federal Reserve’s decision-making regarding interest rates. The central bank has been raising rates to control inflation, which has been above 2 percent for the past 30 months. They believe that tamping down demand is necessary to control prices.

Fed officials are closely monitoring the strength of consumers and the job market as they consider their next move with interest rates. They are likely to leave rates unchanged at their upcoming meeting, but there is still a possibility of a quarter-point increase if economic data remains strong.

Retailers are reporting mixed outlooks for the holiday season. Many expect strong sales, with Halloween spending projected to reach a record $12.2 billion. However, some analysts predict weak winter shopping, with holiday sales growth estimated at the slowest since 2012.

Companies are carefully managing their inventory for the holidays, and a Fed survey shows concerns about slowing growth.

One challenge in forecasting is the division among consumers. Wealthier consumers continue to spend, while lower-income shoppers may pull back or look for deals. Retailers like Kohl’s are adjusting their stores to cater to both types of customers.

The resilience of consumer demand has defied expectations for an economic slowdown. While economists and analysts are uncertain about the future, the strong growth in consumer demand continues to drive the economy.