Widget Image
Follow PPD Social Media
Tuesday, November 5, 2024
HomeNewsEconomyConsumer Spending Fizzles in October, Savings Rate Highest in 3 Years

Consumer Spending Fizzles in October, Savings Rate Highest in 3 Years

consumer-spending
consumer-spending

A shopper organizes his cash before paying for merchandise at a Best Buy Co. store in Peoria, Illinois, U.S., on Friday, Nov. 23, 2012. (Photo: Daniel Acker/Bloomberg/Getty)

Consumer spending, which accounts for more than two-thirds of U.S. economic activity increased 0.1% in October, missing economists’ forecast for 0.3%. The Commerce Department reported on Wednesday that the savings rate hit the highest level in three years.

Personal income increased 0.4%, up from 2%, which came in matching expectations. Wages and salaries jumped by 0.6%, the largest increase since May. When adjusted for inflation, consumer spending gained 0.1 percent in October after rising by the same margin in September.

With income outpacing spending, savings rose, which could boost consumer spending in the coming months. Savings increased to $761.9 billion last month, the highest level since December 2012, from $722.9 billion in September.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial