U.S. consumer spending surged in September as households boosted purchases of motor vehicles and traveled, keeping spending on a higher growth path heading into the fourth quarter.... Consumer spending, which accounts for more than two-thirds of U.S. economic activity, accelerated 0.7% last month after an unrevised 0.4% rise in August, the Commerce Department's Bureau of Economic Analysis reported. Economists polled by Reuters had forecast spending gaining 0.5%. The increase in spending was spread across goods and services. Outlays on goods increased 0.7%, led by prescription medication, new light trucks, food and beverages as well as recreational goods and vehicles. Spending on services shot up 0.8%, boosted by international travel, housing and utilities, healthcare and airline transportation services. The data was included in the advance gross domestic product report for the third quarter published on Thursday, which showed consumer spending accelerating sharply, contributing to the fastest pace of economic growth in nearly two years. Adjusting for inflation, consumer spending rose a solid 0.4% in September after ticking up 0.1% in August, a strong hand-off from the April-June quarter that bodes well for consumption and overall economic growth in the fourth quarter.Inflation-adjusted consumer spending has increase by more than $375 billion in 2023, and continues the mostly steady growth that this country has had since most Americans were able to get COVID vaccinations in early 2021.
Saturday, October 28, 2023
Great spending numbers exceeding decent income figures. So which wins out?
This wasn't surprising after Thursday's blowout GDP Report, but Americans finished out Q3 with strong spending numbers.
Posted by Jake formerly of the LP at 4:28:00 PM