Even though it increased at a lower rate than anticipated, US consumer spending increased (as a result of a higher income boost) sufficiently enough to support the economy in the fourth quarter.
The Commerce Department said that consumer spending, which is accountable for around 70 percent of U.S. economic activity, increased 0.3
percent after an upwardly revised 0.7 percent gain in September.
The government reported that GDP
increased at a 3.2 percent annual rate in the third quarter, driven by
strong consumer spending and a surge in soybean exports.
With consumer spending consolidating, inflation continued to gain at a steady rate. The personal consumption
expenditures (PCE) price index rose 0.2 percent after a similar
increase in September.
To read more on this, go to:
http://www.cnbc.com/2016/11/30/us-consumer-spending-income-increase-in-october.html
Its good to see an increase in consumer spending, even though it was lower than the anticipated rate, but it keeps the economy stable and vibrant. Hopefully this trend will continue.
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