U.S. consumer spending increased slightly more than expected in September, putting it and the economy on a higher growth trajectory heading into the final three months of the year.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.5% last month after an upwardly revised 0.3% gain in August, the Commerce Department’s Bureau of Economic Analysis reported on Thursday.
Economists polled by Reuters had forecast consumer spending advancing 0.4% after a previously reported 0.2% rise in August.
The data was included in the advance gross domestic product report for the third quarter, which was published on Wednesday. Consumer spending increased at a 3.7% annualized rate, the most since the first quarter of 2023, contributing the bulk of the economy’s 2.8% growth pace last quarter.
Spending is being driven by a resilient labor market as well as a rise in household net worth, thanks to a stock market boom and higher house prices.
PragDem
Article URL : https://www.reuters.com/markets/us/us-consumer-spending-beats-expectations-september-2024-10-31/