Consumer spending rises in October amid rampant inflation


US consumer spending soared higher than expected in October as households bought a range of automobiles and other goods, with high inflation still showing no signs of stopping, and an economic outlook early in the fourth quarter.

The Commerce Department said Wednesday that consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6% in September to 1.3% last month. Costs were partially offset by higher prices as demand outstrips supply.

lbl surveyed economists forecast consumer spending to rise 1.0%.

The simultaneous recovery of the global economies from the COVID-19 epidemic, stimulated by trillions of dollars in relief money from governments, downsized supply chains and eased inflation.

President Biden on Tuesday announced that the United States will release 50 million barrels of crude oil from the US Strategic Petroleum Reserve to help cool oil prices under the aegis of China, India, South Korea, Japan and Britain.

Consumer spending is accelerating after a dramatic slowdown in the third quarter as COVID-19 infections, driven by the Delta variant, have emerged and commodity shortages have become more widespread. The fear of empty shelves and even more payment for scarce goods has encouraged Americans to start their holiday shopping early.

Retailers expect holiday sales to be better over the years, but some economists are warning about the downside risks for pink forecasts. Coronavirus infections are on the rise again, which prompts some consumers to cut spending on travel and entertainment, including lunch.

Consumer shopping accounts for more than two-thirds of US economic activity.
Getty Images

“In addition, continued clogged supply chains and port delays could lead to product shortages on shelves because cargo ships remain offshore waiting to be unloaded at large ports in Southern California,” said Scott Anderson, chief economist at San Francisco’s Bank of the West. .

“Both scenarios have the potential to put a damper on these optimistic holiday sales projections.”

In October, the price pressure was heating up. The Index of Personal Use Expenditure (PCE) increased 0.4% after gaining 0.2% in September, excluding volatile food and energy components. In the 12 months to October, the Core PCE Price Index accelerated 4.1%. It followed a year-over-year advance of 3.7% in September.

The Core PCE Price Index is the Federal Reserve’s preferred inflation measure for its flexible 2% target.

.

Related Articles

Waukesha Parade tragedy: A child released from hospital on Saturday, 8 left

One of the nine remaining children in the hospital was released Saturday after the tragedy of last Sunday's Christmas parade in Wisconsin, according...

The Knicks’ big-picture goals need Julius Randall to return to his best

For fans of the same mocking Nicks that got so cold-muted last summer by Trey Young, this is a holiday season that includes...

Alec Burks shone in the Knicks victory over the Emmanuel Quickly Hawks

ATLANTA - Tom Thibodeau said with a straight face 90 minutes before the Knicks game tip-off against the Hawks on Saturday night, with...

Latest Posts

Waukesha Parade tragedy: A child released from hospital on Saturday, 8 left

One of the nine remaining children in the hospital was released Saturday after the tragedy of last Sunday's Christmas parade in Wisconsin, according...

The Knicks’ big-picture goals need Julius Randall to return to his best

For fans of the same mocking Nicks that got so cold-muted last summer by Trey Young, this is a holiday season that includes...

Alec Burks shone in the Knicks victory over the Emmanuel Quickly Hawks

ATLANTA - Tom Thibodeau said with a straight face 90 minutes before the Knicks game tip-off against the Hawks on Saturday night, with...

The Giants match the rival Eagles with a little spark

It can be very juicy. Instead, it dried up like a 4-day-old Thanksgiving turkey. It is likely that the Giants-Eagles will drip...

The Nets fall to the league-best Suns in front of a record audience

The Nets looked worse than they did on Saturday night ... the last time they played a top team. There may be correlation....