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 and by the failure of Congress to provide another stimulus package to struggling individuals and businesses. Economists warn that consumer spending could falter further in the current October-December quarter given that many of the major government support programs have expired and Congress has yet to renew the assistance. The report showed that while the wages-and-salaries component of consumer income rose 0.7% in October, government transfers — the category that includes unemployment aid and other benefits — fell 6.2%.

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History of this topic

U.S. consumer spending rises in November; monthly inflation subsides
3 days, 21 hours ago

U.S. consumer spending rises in November; monthly inflation subsides

The Hindu  

U.S. consumer spending increased in November, underscoring the economy's enduring strength, which prompted the Federal Reserve this week to project fewer interest rate cuts in 2025 than it had three months ago. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% last month after a downwardly revised 0.3% gain in October, the Commerce Department's Bureau …

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 …

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 …

Federal Reserve’s favored inflation gauge tumbles in November as prices continue to ease
1 year ago

Federal Reserve’s favored inflation gauge tumbles in November as prices continue to ease

Associated Press  

WASHINGTON — The Federal Reserve’s preferred measure of prices fell last month, another sign that inflation is easing and that Americans should benefit from reduced interest rates and get relief from painful price shocks in 2024. Friday’s report from the Commerce Department showed that U.S. consumer prices slid 0.1% last month from October and rose 2.6% from November 2022. Excluding …

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 …

U.S. inflation eased in October, cooling cost of gas, cars and airfares
1 year, 1 month ago

U.S. inflation eased in October, cooling cost of gas, cars and airfares

LA Times  

Prices either fell or rose slowly in October across a broad range of goods and services, including gas, new and used cars and hotel rooms. Inflation in the United States slowed last month in a sign that the Federal Reserve’s interest rate hikes are continuing to cool the consumer price spikes that have bedeviled consumers for the last two years. …

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 …

Americans continue to feel better about inflation and the economy
1 year, 4 months ago

Americans continue to feel better about inflation and the economy

CNN  

Washington, DC CNN — US consumers have been feeling a whole lot better this summer as inflation has continued to slow. Consumer sentiment tracked by the University of Michigan rose 11% in July from the prior month, reaching its highest level since October 2021, according to a final reading of the month’s data. “Overall, the sharp rise in sentiment was …

CPI report: US inflation is coming back down to Earth
1 year, 6 months ago

CPI report: US inflation is coming back down to Earth

CNN  

Minneapolis CNN — US inflation is leaving those sky-high days behind: Consumer prices in May rose at the slowest annual pace since March 2021, according to data released Tuesday by the Bureau of Labor Statistics. “They’ve raised rates for 10 consecutive meetings in a row and the increase is the most and fastest pace in decades, so they want to …

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 …

US consumer inflation eased to 7.7% over past 12 months
2 years, 1 month ago

US consumer inflation eased to 7.7% over past 12 months

Associated Press  

WASHINGTON — Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows. Stripping out volatile food and energy prices, “core’’ inflation rose 6.3% in the past 12 months and 0.3% from September. “With supply shortages normalizing, deflationary pressure is now finally …

US consumer prices finally start to ease
2 years, 1 month ago

US consumer prices finally start to ease

Al Jazeera  

Prices rose less than expected in October, pushing inflation below eight percent for the first time this year. Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates to try to stem persistently high price increases. But Thursday’s better-than-expected data raised the possibility that the Fed could decide to slow its …

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% …

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 …

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 …

A key inflation gauge rose 5.8% in 2021, most in 39 years
2 years, 10 months ago

A key inflation gauge rose 5.8% in 2021, most in 39 years

Associated Press  

WASHINGTON — A measure of prices that is closely tracked by the Federal Reserve rose 5.8% last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply chains to raise the costs of food, furniture, appliances and other goods. Stubbornly high inflation has hammered household budgets, wiped out last year’s healthy wage gains and posed a …

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 …

Americans are spending but inflation casts pall over economy
3 years, 1 month ago

Americans are spending but inflation casts pall over economy

Associated Press  

WASHINGTON — Americans are doing the main thing that drives the U.S. economy — spending — but accelerating inflation is casting a pall. A raft of economic data issued Wednesday showed the economy on solid footing, with Americans’ incomes rising and jobless claims falling to a level not seen since the Beatles were still together. In a cautionary note Wednesday …

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 …

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 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 …

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 …

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 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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