U.S. consumer spending grew solidly in September but was partly slowed down by higher prices as inflation remained high amid shortages of motor vehicles over supply constraints.
- Consumer spending, which accounts for over 75% of the U.S. economic activity, grew by 0.6% last month. August figures were revised higher to indicate spending bouncing back 1.0% rather than 0.8% as initially indicated.
- A resurgence in COVID-19 cases over the summer worsened worker shortages at factories, mines, and ports, further hampering supply chains.
- The personal consumption expenditures (PCE) price index, excluding the volatile food and energy elements, rose 0.2% after increasing 0.3% in August.
- In the 12 months through Sept., the core PCE price index rose 3.6% after a similar gain in August.
Meanwhile, personal income decreased by 1.0% to $216.2 billion in September. Disposable personal income dropped 1.3% to $236.9 million, and PCE rose by $93.4 billion.
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Source: U.S. Department of Commerce