Consumer spending increased solidly in September, but higher prices are beginning to bite, as inflation remains hot amid shortages of cars and other goods in the face of global supply constraints.
The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.6 percent last month. Data for August was revised higher to show spending rebounding 1 percent instead of 0.8 percent as previously reported.
Economists polled by Reuters had forecast consumer spending increasing 0.5 percent. A resurgence in Covid-19 cases over summer, driven by the delta variant, worsened worker shortages at factories, mines and ports, further stressing supply chains. Outside the shutdown in spring 2020, which severely depressed output, the third quarter was the worst period for motor vehicle production since early 2009 because of a global shortage of semiconductors. Auto inventories have been run down and some shelves are bare, curbing spending and boosting prices.The personal consumption expenditures price index, excluding the volatile food and energy components, climbed 0.2 percent after gaining 0.3 percent in August.
The core PCE price index is the Federal Reserve’s preferred inflation measure for its flexible 2 percent target. The Fed is expected to announce at next week’s policy meeting that it will start reducing the amount of money it is pumping into the economy through monthly bond purchases.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
U.S. Consumer Spending Grew More Slowly in SeptemberHousehold spending rose 0.6% as a combination of high Covid-19 cases, product shortages and rising prices held consumers back.
Les mer »
Daimler Q3 posts higher profit despite chip shortageDaimler AG on Friday reported a higher quarterly net profit despite a global semiconductor chip shortage that has pummeled the auto industry, as it focused on higher-margin cars and cost cutting.
Les mer »
Pending home sales fell unexpectedly in September, likely due to higher mortgage ratesPending home sales fell an unexpected 2.3% in September compared with August, according to the National Association of Realtors.
Les mer »
Joakim Noah Compares Derrick Rose's ACL Tear To September 11th AttacksEx-NBA star Joakim Noah says Derrick Rose's ACL tear in 2012 reminded him of September 11 attacks.
Les mer »
McDonald's sales surged 14% as virus restrictions easedMcDonald’s is reporting stronger-than-expected sales in the third quarter, boosted by larger orders and higher prices on the menu.
Les mer »
Economic growth rate slows to 2% on a sharp slowdown in consumer spendingTech-focused hedge fund manager Dan Niles answers your questions and gives his latest moves in the industry. Plus a real-time reaction to the Fed decision.
Les mer »