U.S. consumer spending beats expectations amidst heating inflation
Category: #headlines  | By Nikita Chaurasia  | Date: 2021-11-26 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

U.S. consumer spending beats expectations amidst heating inflation

Consumer spending in the United States rose more than predicted in October with continuous purchasing of automobiles and various other products, with no indications of slowing down due to high inflation, further supporting the much-needed economic boost early in the fourth quarter.

According to the Commerce Department, consumer spending, which accounts for more than two-thirds of all economic activity in the United States, increased 1.3% last month from 0.6% in September. Higher prices helped stimulate increased spending as demand continues to outperform supply.

The simultaneous recovery of global economies from the COVID-19 pandemic, backed by trillions of dollars in government relief funds, has stressed supply networks, causing inflation.

Consumer expenditure jumped after a significant slowdown in the third quarter as Delta variant infections surged and caused supply bottlenecks. Concerns regarding the lack of goods have prompted many Americans to begin their holiday shopping early.

Holiday sales are expected to be the strongest in years, however, experts warn that the optimistic projection can be dampened. Coronavirus infections are rising, prompting some customers to reduce their travel and entertainment spending, including dining out.

Scott Anderson, Chief Economist, Bank of the West in San Francisco, stated that strained supply chains and port delays might contribute to product scarcities as cargo ships remain moored offshore waiting to be unloaded at the large ports in Southern California. Both scenarios have the potential to dampen these positive-looking holiday sales forecasts, he added.

After increasing 0.2% in September, the personal consumption expenditures (PCE) price index gained 0.4%, excluding the volatile food and energy components. The core PCE price index climbed by 4.1% in the 12 months leading up to October. The hike came after a 3.7% increase year-over-year in September, sources confirmed.

The core PCE price index is Federal Reserve's favored inflation gauge for its flexible 2% target.

Source Credit-

https://money.usnews.com/investing/news/articles/2021-11-24/u-s-consumer-spending-surges-in-october-inflation-heats-up-again

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

General Motors passes Ford to become the second-best EV seller in U.S.

General Motors passes Ford to become the second-best EV seller in U.S.

By Nikita Chaurasia

Detroit-based American multinational automaker, General Motors, has reportedly pulled ahead of fellow American rival, Ford Motor, to establish itself as second-biggest seller of all-electric vehicles in the US during the first quarter of 2023. The...

McKinsey commences job cuts focused on non-client serving teams

McKinsey commences job cuts focused on non-client serving teams

By Nikita Chaurasia

McKinsey and Co. a consulting giant entity has decided to start cutting jobs in one of the biggest rounds of layoffs for the company. This is likely to eliminate the jobs of about 2000 employees from work. The layoffs will be focused on support st...

Fintech firm PayPal to shed around 2000 staff as global economy plummets

Fintech firm PayPal to shed around 2000 staff as global economy plummets

By Nikita Chaurasia

PayPal, the U.S.-based fintech giant, has reportedly announced that it will cut nearly 2000 jobs, approximately 7% of its workforce, as it turns the latest prominent tech company to shed staff in a bid to cut costs. The online payments provider cl...