US consumer spending and incomes fall, but rebound is expected
3 years, 8 months ago

US consumer spending and incomes fall, but rebound is expected

Al Jazeera  

Both consumer spending and personal incomes are expected to rebound in March as Americans receive stimulus cheques. Consumers’ spending and personal incomes both fell sharply in February as severe winter storms disrupted shopping in many parts of the United States and as the government wrapped up distribution of $600 relief payments. Consumer spending fell one percent last month, the Commerce Department reported Friday, the biggest drop since last April when spending tumbled 12.4 percent as the country was broadsided by the global coronavirus pandemic. Incomes fell a record 7.1 percent last month, a period when the government was completing the bulk of the $600 payments from December’s $900bn relief bill. Mark Zandi, chief economist at Moody’s Analytics, said he expects GDP, fuelled by strong consumer spending, will grow at an annual 5.1 percent this quarter followed by quarterly growth rates continuing to rise for the rest of the year, giving the economy 6 percent growth for all of 2021, the strongest performance in 37 years.

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History of this topic

American consumers feeling less confident in December, Conference Board says
1 day, 11 hours ago

American consumers feeling less confident in December, Conference Board says

Associated Press  

American consumers are feeling less confident in December, a business research group says. The Conference Board said Monday that its consumer confidence index fell back in December to 104.7 from 112.8 in November. Consumers had been feeling increasingly confident in recent months, spending more in the run-up to the all-important holiday shopping season. The consumer confidence index measures both Americans’ …

Is America’s economy heading for a consumer crunch?
6 months, 2 weeks ago

Is America’s economy heading for a consumer crunch?

Hindustan Times  

Nothing has been able to stop American consumers. Paul Siegfried of TransUnion, a credit bureau, estimates that since April last year, 440,000 credit card holders have been downgraded to subprime status. The city’s residents will take longer than those anywhere else in the country to repay their credit card debt, reckons WalletHub, a personal finance firm. Big spenders on large …

Discounting is back in fashion, as Americans get tired of paying more
6 months, 3 weeks ago

Discounting is back in fashion, as Americans get tired of paying more

NPR  

Discounting is back in fashion, as Americans get tired of paying more toggle caption Scott Olson/Getty Images After two years of paying more for things, Americans are growing more cautious about how they spend their money and are forcing retailers to offer more discounts. “It’s a cautious consumer,” said CEO Todd Vasos, describing Dollar General's typical shopper. That newfound caution …

Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain
7 months, 2 weeks ago

Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “The lower income consumer in the U.S. is stretched,” …

Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain
7 months, 2 weeks ago

Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain

Associated Press  

NEW YORK — Cracks are showing in one of the main pillars keeping the economy out of a recession: resilient spending by U.S. households. “The lower income consumer in the U.S. is stretched,” PepsiCo CEO Ramon Laguarta said late last month when reporting better profit than expected, and “is strategizing a lot to make their budgets get to the end …

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
7 months, 4 weeks ago

US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates

Associated Press  

WASHINGTON — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace. Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though it’s slowing from last …

U.S. growth fell sharply to 1.6% last quarter, pressured by high interest rates
8 months ago

U.S. growth fell sharply to 1.6% last quarter, pressured by high interest rates

LA Times  

Robots assemble solar panels at the Hanwha Qcells Solar plant in Dalton, Ga., in 2023. On Thursday, the government reported that U.S. economic growth slowed sharply last quarter to a 1.6% annual pace. The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic …

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate
9 months, 3 weeks ago

US economy grew solid 3.2% in fourth quarter, a slight downgrade from government’s initial estimate

Associated Press  

WASHINGTON — The U.S. economy grew at a robust 3.2% annual pace from October through December, propelled by healthy consumer spending, the Commerce Department reported Wednesday in a slight downgrade from its initial estimate. U.S. growth has now topped 2% for six straight quarters, defying fears that high interest rates would tip the world’s largest economy into a recession. The …

America’s economy slowed—it probably won’t stumble
10 months, 1 week ago

America’s economy slowed—it probably won’t stumble

Live Mint  

The U.S. economy took a breather in January following brisk growth at the end of last year, but it remains fundamentally healthy. Technical issues with how the retail sales data was seasonally adjusted might have weighed on the reading, and cold weather in January likely had an impact on both retail sales and industrial production. Within the retail sales report, …

American consumers feeling more confident than they have in two years
10 months, 3 weeks ago

American consumers feeling more confident than they have in two years

Associated Press  

American consumers, fresh off strong holiday spending, are feeling more confident than they have in two years. The Conference Board, a business research group, said Tuesday that its consumer confidence index rose for the third straight month, to 114.8 in January from 108 in December. The index, which measures both Americans’ assessment of current economic conditions and their outlook for …

After a summer of splurging, Americans start to pull back on spending
1 year, 1 month ago

After a summer of splurging, Americans start to pull back on spending

LA Times  

A customer browses the holiday lights at a store in Charlotte, N.C. Economists forecast a slowdown in consumer spending in the final three months of the year, as credit card debt and deliquencies rise, and average savings fall. Consumer spending jumped in the July-September quarter, but economists forecast it will slow in the final three months of the year, as …

US consumers keep spending despite high prices and their own gloomy outlook. Can it last?
1 year, 1 month ago

US consumers keep spending despite high prices and their own gloomy outlook. Can it last?

Associated Press  

WASHINGTON — A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls. On Thursday, the government said the economy accelerated at a 4.9% …

US consumers keep spending briskly even in the face of persistent inflation and high interest rates
1 year, 1 month ago

US consumers keep spending briskly even in the face of persistent inflation and high interest rates

Associated Press  

WASHINGTON — An inflation gauge that is closely monitored by the Federal Reserve showed price increases remained elevated in September amid brisk consumer spending and strong economic growth. Taken as a whole, the figures the government issued Friday show a still-surprisingly resilient consumer, willing to spend briskly enough to power the economy even in the face of persistent inflation and …

US economy grows at its fastest rate in TWO YEARS after households splashed out on Taylor Swift concerts and Barbie tickets - but experts warn trend is finally starting to slow
1 year, 1 month ago

US economy grows at its fastest rate in TWO YEARS after households splashed out on Taylor Swift concerts and Barbie tickets - but experts warn trend is finally starting to slow

Daily Mail  

That is the highest growth in almost two years - spurred by consumer spending US GDP accelerated 4.9 percent in Q3, according to the Commerce Department The US economy grew last quarter at its fastest rate in nearly two years thanks to a surge in consumer spending. Consumer spending was up 4 percent, up from just 0.8 percent last quarter, …

Retail sales dip 0.4% in February after buying burst in Jan.
1 year, 9 months ago

Retail sales dip 0.4% in February after buying burst in Jan.

Associated Press  

NEW YORK — America’s consumers trimmed their spending in February after a buying burst in January, underscoring the volatility of the economic environment. Still, it remains to be seen whether news coverage of bank failures and stock market gyrations will hurt consumer sentiment this month, writes Capital Economics’ Deputy Chief U.S Economist Andrew Hunter in a report issued Wednesday. The …

The unexpected American shopping spree seems to have cooled
1 year, 9 months ago

The unexpected American shopping spree seems to have cooled

NPR  

The unexpected American shopping spree seems to have cooled Enlarge this image toggle caption Stefani Reynolds/AFP via Getty Images Stefani Reynolds/AFP via Getty Images An unexpected spending spree by U.S. shoppers seems to have calmed. Sponsor Message Inflation has been moderating since peaking last summer, but consumer prices in February were still 6% higher than a year ago, data showed …

Despite high inflation, Americans are spending like crazy — and it's kind of puzzling
1 year, 10 months ago

Despite high inflation, Americans are spending like crazy — and it's kind of puzzling

NPR  

Despite high inflation, Americans are spending like crazy — and it's kind of puzzling Enlarge this image toggle caption Spencer Platt/Getty Images Spencer Platt/Getty Images Something unexpected is going on in the U.S. economy. But there's a catch: All that spending threatens to put more upward pressure on inflation at a time when the Federal Reserve is raising interest rates …

US consumer spending surges in January, inflation heats up
1 year, 10 months ago

US consumer spending surges in January, inflation heats up

Al Jazeera  

US consumer spending increased by the most in nearly two years in January amid a surge in wage gains. US consumer spending increased by the most in nearly two years in January amid a surge in wage gains, while inflation accelerated, adding to financial market fears that the Federal Reserve could continue raising interest rates through summer. “This report means …

US inflation and consumer spending cooled in December
1 year, 10 months ago

US inflation and consumer spending cooled in December

Associated Press  

WASHINGTON — The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell — the latest evidence that the Fed’s series of interest rate hikes are slowing the economy. Friday’s report from the Commerce Department showed that prices rose 5% last month from a year earlier, down from a 5.5% year-over-year increase in November. Last year’s holiday …

US inflation and consumer spending cooled in December
1 year, 10 months ago

US inflation and consumer spending cooled in December

Al Jazeera  

The pullback in consumer spending will likely be welcomed by Fed officials, who are seeking to cool the economy. The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell – the latest evidence that the Fed’s series of interest rate rises are slowing the economy. Friday’s report from the US Department of Commerce showed that prices …

US consumer spending, inflation cool in November
2 years ago

US consumer spending, inflation cool in November

Al Jazeera  

While economic activity is slowing amid rising interest rates, it’s not enough to discourage US Fed from more rises. Slowing economic activity amid rising borrowing costs was also flagged by other data from the Department of Commerce on Friday showing a modest gain in orders for locally manufactured capital goods last month. The personal consumption expenditures price index rose 0.1 …

Resilient US consumers spend slightly more in August
2 years, 2 months ago

Resilient US consumers spend slightly more in August

Associated Press  

WASHINGTON — Consumers spent a bit more in August than the previous month, a sign the economy is holding up even as inflation lifts prices for food, rent, and other essentials. Yet much of that increase reflected higher prices, with an inflation gauge closely monitored by the Federal Reserve rising 0.3% in August, the government’s report showed. The inflation figures …

US economy drops at 0.6% annual rate from April through June
2 years, 2 months ago

US economy drops at 0.6% annual rate from April through June

Associated Press  

WASHINGTON — Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. But the Fed has raised interest rates five times this year — most recently Sept. 21 — to rein in consumer prices, which were up 8.3% …

Spending down across all sectors in mid-August, ONS says
2 years, 3 months ago

Spending down across all sectors in mid-August, ONS says

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Consumers spent less over the …

US Economy Shrank by 1.5% in Q1 but Consumers Kept Spending
2 years, 6 months ago

US Economy Shrank by 1.5% in Q1 but Consumers Kept Spending

News 18  

The US economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter. Last quarter’s drop in the US gross domestic product the broadest gauge of economic output does not likely signal the start …

US economy shrank by 1.5% in Q1 but consumers kept spending
2 years, 6 months ago

US economy shrank by 1.5% in Q1 but consumers kept spending

Associated Press  

WASHINGTON — The U.S. economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter. Last quarter’s drop in the U.S. gross domestic product — the broadest gauge of economic output — does not …

Consumers defy inflation to support economy. For how long?
2 years, 7 months ago

Consumers defy inflation to support economy. For how long?

Associated Press  

WASHINGTON — With prices across the economy — from food, gas and rent to cars, airfares and hotel rooms — soaring at their fastest pace in decades, you might think Americans would tap the brakes on spending. “There’s still plenty of reasons to believe in the resilience of the consumer,” she said, pointing to America’s robust job market and the …

US economy unexpectedly shrinks in 2022’s first quarter
2 years, 7 months ago

US economy unexpectedly shrinks in 2022’s first quarter

Al Jazeera  

The U.S. economy unexpectedly shrank last quarter for the first time since 2020 as the trade deficit ballooned, adding to political headaches for President Joe Biden but unlikely to sway the Federal Reserve from hiking interest rates aggressively to combat inflation. Gross domestic product fell at a 1.4% annualized rate as surging imports and softer inventory growth more than offset …

Inflation bites: US prices hike is tempering consumer demand
2 years, 8 months ago

Inflation bites: US prices hike is tempering consumer demand

Al Jazeera  

In the United States, rapid inflation has eroded wage growth and driven up the costs of necessities like energy, food and rent. The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, increased 0.6% from a month earlier and 6.4% from February 2021, the most since 1982. The median forecasts in a Bloomberg survey of …

US consumer confidence falls in November as inflation bites
3 years ago

US consumer confidence falls in November as inflation bites

Al Jazeera  

Consumers in the US are feeling less optimistic about the short-term outlook for their employment and income prospects. Consumers in the United States are feeling less confident about the economy and the short-term outlook for their employment and income prospects, the Conference Board said on Tuesday. The Conference Board’s Consumer Confidence Index fell 2.1 points to 109.5 in November, after …

US consumer spending rebounds despite accelerating inflation
3 years, 1 month ago

US consumer spending rebounds despite accelerating inflation

Al Jazeera  

Consumer spending jumped by 1.3 percent in October, double the 0.6 percent gained in September, the US Department of Commerce reported. United States consumer spending rebounded by a solid 1.3 percent in October despite inflation that during the past year has accelerated faster than it has at any point in more than three decades. Analysts said the solid increase in …

Despite higher prices, US consumers keep spending up a storm
3 years, 1 month ago

Despite higher prices, US consumers keep spending up a storm

Al Jazeera  

Inflation in the United States may have surged to a 30-year high in October, but that didn’t stop consumers from spending up a storm last month as Americans got a jump start on the holiday shopping season. Sales at retail stores, online and at restaurants in the world’s largest economy increased 1.7 percent in October compared to the previous month, …

US consumer sentiment drops as inflation worries mount
3 years, 1 month ago

US consumer sentiment drops as inflation worries mount

Al Jazeera  

U.S. consumer sentiment unexpectedly collapsed in early November as Americans grew increasingly concerned about rising prices and the inflationary impact on their finances. Waning confidence reflects “ an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation,” Richard Curtin, director of the survey, said in …

US consumer spending up a modest 0.6% with inflation high
3 years, 1 month ago

US consumer spending up a modest 0.6% with inflation high

Associated Press  

WASHINGTON — American consumers slowed their spending to a gain of just 0.6% in September, a cautionary sign for an economy that remains in the grip of a pandemic and a prolonged bout of high inflation. On Thursday, the government estimated that the economy slowed sharply to a 2% annual growth rate in the July-September period, the weakest quarterly expansion …

US consumers boost spending 1% as inflation remains high
3 years, 4 months ago

US consumers boost spending 1% as inflation remains high

Associated Press  

WASHINGTON — American consumers increased their spending by 1% in June — a dose of energy for an economy that is quickly rebounding from the pandemic recession but is facing new risks led by the delta variant of the coronavirus. June’s solid increase in consumer spending provided further evidence that consumers are driving a strengthening recovery from the pandemic recession. …

US consumer spending rose more than expected in June
3 years, 4 months ago

US consumer spending rose more than expected in June

Al Jazeera  

As more places reopened and people got COVID-19 jabs, consumers confidently spent money at restaurants and stores. U.S. personal spending accelerated more than expected in June, reflecting a ramp up in outlays on services, while a closely watched inflation measure continued to climb. A separate report on employment costs Friday showed private-industry wages rose 3.5% from the second quarter of …

May consumer spending flat; incomes fall and prices jump
3 years, 5 months ago

May consumer spending flat; incomes fall and prices jump

Associated Press  

WASHINGTON — Consumer spending was flat in May with incomes dropping for a second month as the impact of the government’s pandemic stimulus payments waned. The flat reading for consumer spending in May represented a marked slowdown following gains of 0.9% in April and a 5% surge in March, the Commerce Department reported Friday. The spending surge in March had …

March US incomes surge as relief rolls out, spending jumps
3 years, 7 months ago

March US incomes surge as relief rolls out, spending jumps

Associated Press  

WASHINGTON — U.S. consumer spending rose at the fastest pace in nine months while incomes soared by a record amount in March, reflecting billions of dollars in government support payments aimed at putting the country firmly on the road to recovery. The big gain reflected delivery of billions of dollars in relief payments with individuals getting up to $1,400 payments …

US recovery from pandemic recession is showing momentum
3 years, 7 months ago

US recovery from pandemic recession is showing momentum

Associated Press  

WASHINGTON — Powered by consumers and fueled by government aid, the U.S. economy is achieving a remarkably fast recovery from the recession that ripped through the nation last year on the heels of the coronavirus and cost tens of millions of Americans their jobs and businesses. The economy grew last quarter at a vigorous 6.4% annual rate, the government said …

With layoffs down and spending up, US rebound gains momentum
3 years, 8 months ago

With layoffs down and spending up, US rebound gains momentum

Associated Press  

WASHINGTON — A much-awaited economic boom coming off the pandemic recession appeared to edge closer to reality Thursday with fresh data showing the pace of layoffs dwindling, consumers spending freely and manufacturing rebounding. And sales at retail stores and restaurants jumped 9.8% in March, the biggest gain since last May, when the economy first started to rebound from the virus’ …

Inflation watch: US consumer prices post biggest jump in 8 years
3 years, 8 months ago

Inflation watch: US consumer prices post biggest jump in 8 years

Al Jazeera  

Consumer prices in the United States in March posted their sharpest rise in more than eight years as vaccinations increase and the economy reaps the benefits of massive government spending. Consumer prices in the United States posted their strongest jump in more than eight years in March, as more Americans get vaccinated against COVID-19 and the economy reaps the benefits …

US consumers rebound to boost spending 2.4% as income jumps
3 years, 9 months ago

US consumers rebound to boost spending 2.4% as income jumps

Associated Press  

WASHINGTON — Bouncing back from months of retrenchment, America’s consumers stepped up their spending by a solid 2.4% in January, the sharpest increase in seven months and a sign that the economy may be poised to sustain a recovery from the pandemic recession. Friday’s report from the Commerce Department also showed that personal incomes, which provide the fuel for spending, …

US consumer spending fell 0.2% in December in face of virus
3 years, 10 months ago

US consumer spending fell 0.2% in December in face of virus

Associated Press  

WASHINGTON — U.S. consumers slowed their spending by 0.2% in December, cutting back for a second straight month in a worrisome sign for an economy struggling under the weight of a still out-of-control pandemic. On Thursday, the government estimated that the economy grew at a 4% annual rate in the final three months of 2020 but shrank last year by …

The engine of the US economy, consumer spending, sputters again
3 years, 10 months ago

The engine of the US economy, consumer spending, sputters again

Al Jazeera  

Surging COVID-19 infections and restrictions in December slammed the brakes on the engine of the US economy – consumer spending – for the second consecutive month. Business-sapping restrictions designed to contain spiralling COVID-19 infections slammed the brakes on the engine of the United States economy in December, as consumers kept their wallets snapped shut and hunkered down at home. Consumer …

COVID-19 pummels US economy in 2020; performance weakest in 74 years
3 years, 10 months ago

COVID-19 pummels US economy in 2020; performance weakest in 74 years

Live Mint  

Washington: The U.S. economy contracted at its sharpest pace since World War Two in 2020 as the COVID-19 pandemic depressed consumer spending and business investment, pushing millions of Americans out of work and into poverty. In the fourth quarter, GDP increased at a 4.0% annualized rate as the virus and lack of another spending package curtailed consumer spending, and partially …

US consumer credit up 4.4% in November, best in 5 months
3 years, 11 months ago

US consumer credit up 4.4% in November, best in 5 months

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

US credit card balances fall, though overall borrowing rises
4 years ago

US credit card balances fall, though overall borrowing rises

Associated Press  

WASHINGTON — U.S. consumers took out more auto and student loans in October, but cut back on credit card borrowing, a sign that they remain cautious about spending amid a spike in virus cases. The Federal Reserve said Monday that consumer borrowing rose 2.1% in October to $4.16 trillion, pushed higher by a 4.8% jump in a category mostly made …

Consumer spending up a slight 0.5% as virus maintains grip
4 years ago

Consumer spending up a slight 0.5% as virus maintains grip

Associated Press  

WASHINGTON — U.S. consumers increased their spending by a sluggish 0.5% last month, the weakest rise since April, when the pandemic first erupted, and a sign that Americans remain wary with the virus resurging across the country and threatening the economy. It suggested that consumer spending, the primary driver of the U.S. economy, is being restrained by a weakened economy …

Consumer spending gains slow to 1% in August
4 years, 2 months ago

Consumer spending gains slow to 1% in August

Associated Press  

WASHINGTON — U.S. consumer spending slowed in August and personal income fell as a $600 weekly benefit for Americans who are unemployed during the pandemic expired. The Commerce Department reported Thursday that spending grew by just 1%, the weakest growth since spending fell 12.7% in April when rapidly spreading COVID-19 infections shut down large parts of the economy. “Unless employment …

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