All articles tagged with #personal spending
Inflation, as measured by personal spending, increased by 0.2% in October and 3.5% from a year ago, in line with expectations. This data may give the Federal Reserve more reason to maintain steady interest rates and potentially consider rate cuts in 2024. Personal income and spending also rose by 0.2% in October, meeting estimates.
The recent rise in the unemployment rate in the US has sparked concerns of a possible recession, as it is a half percentage point higher than its recent low. However, the Sahm Rule, which states that such a rise signals the beginning of a recession, may not apply this time. The increase in the unemployment rate is largely due to more people entering or re-entering the workforce, rather than job losses. Additionally, personal spending has remained strong, boosting GDP. However, the Federal Reserve's aggressive interest rate hikes and growing credit card debt raise concerns about the sustainability of this spending. While many forecasters still predict a recession, there is no rule saying it is inevitable.
The US Bureau of Economic Analysis reported that inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, was 3.4% on a yearly basis in September, matching the August reading and meeting market expectations. The annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, rose 3.7%, slightly softer than the previous month. Personal Spending increased by 0.7% on a monthly basis in September, while Personal Income rose by 0.3%. The US Dollar's valuation remained relatively stable following the release of the inflation data.
Personal income rose by 0.3% in February, while personal spending increased by 0.2%, according to the Bureau of Economic Analysis. Inflation slowed during the month, with the core PCE Index rising by 0.3%, down from 0.6% in January. The personal saving rate was 4.6% in February, up from 4.4% in January. The Y/Y increase in the core PCE Index remains more than double the Federal Reserve's goal of 2% inflation.