US con­sumer spend­ing in fastest growth in 8 years

Con­sumer spend­ing in­creases 1% in Septem­ber but un­der­ly­ing in­fla­tion re­mained muted

Gulf News - - Business -

US con­sumer spend­ing recorded its big­gest in­crease in more than eight years in Septem­ber, likely as house­holds in Texas and Florida re­placed flood­dam­aged mo­tor ve­hi­cles, but un­der­ly­ing in­fla­tion re­mained muted.

The Com­merce De­part­ment said yes­ter­day con­sumer spend­ing, which ac­counts for more than two-thirds of US eco­nomic ac­tiv­ity, jumped 1 per cent last month. The in­crease, which also in­cluded a boost from higher house­hold spend­ing on util­i­ties, was the largest since Au­gust 2009.

Con­sumer spend­ing rose by an un­re­vised 0.1 per cent in Au­gust. Econ­o­mists polled by Reuters had fore­cast con­sumer spend­ing in­creas­ing cent in Septem­ber.

Prices of US Trea­suries were higher in early morn­ing trad­ing while the dol­lar was weaker against a bas­ket of cur­ren­cies. US stock in­dex fu­tures were mixed. The data was in­cluded in last Fri­day’s thirdquar­ter gross do­mes­tic prod­uct re­port, which showed con­sumer spend­ing growth slow­ing to a 2.4 per cent an­nu­alised rate af­ter a ro­bust 3.3 per cent pace in the sec­ond quar­ter.

The mod­er­a­tion in con­sump­tion was off­set by a rise in in­ven­tory in­vest­ment, busi­ness spend­ing on equip­ment and a drop in im­ports, which left the econ­omy grow­ing at a 3 per cent rate in the third quar­ter af­ter the April-June pe­riod’s brisk 3.1 per cent pace.

The Com­merce De­part­ment said Septem­ber data re­flected the ef­fects of Hur­ri­canes Har­vey and Irma, but said it could not quan­tify the to­tal im­pact of the storms on con­sumer spend­ing and per­sonal in­come. 0.8 per

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.