U.S. personal spending rises in October

WASHINGTON, Dec. 1 (Xinhua) -- U.S. households increased spending in October from the previous month, government figures released on Thursday showed.

Personal spending in October grew 0.8 percent from September, according to data released by the U.S. Commerce Department.

The data suggests that interest rate hikes by the U.S. Federal Reserve have not prevented consumers from spending, even if they must dig into their savings.

The U.S. savings rate dropped to 2.3 percent, the second lowest ever.

Spending in October was mainly driven by purchases of new autos, as well as spending on housing and food items.

"Households are heading into the holiday season in fairly good shape," said Ryan Sweet, chief U.S. economist at Oxford Economics, as quoted in Investing.com and published in Yahoo Finance.

Sweet added that "all in all, it's going to be another solid holiday shopping season, with unemployment low and wage growth still solid."

Still, many economists note that U.S. inflation remains stubbornly high, the worst in four decades, and the Fed has shown no signs of backing off of the most aggressive rate hike cycle in decades.

Many economists predict a recession in the United States for next year, albeit a mild and short-lived one.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In World

Mexico's economy grows 3 pct in 2022, says preliminary report
Gold rises on weaker U.S. dollar
Italian economic growth stronger than expected in 2022
Feature: Magicians present "China Week" at Hollywood Magic Castle to celebrate Chinese Lunar New Year
German unemployment rate climbs to 5.7 pct in January
U.S. says Russia violating New START nuclear arms control treaty
Amazon sets new corporate record for most renewable energy in 2022
Roundup: Desalinated water helps Israel cope with driest winter in years
Canadian province tries decriminalizing drugs to fight overdose crisis
U.S. curbs exports to Iranian firms for producing drones for Russia

Others Also Read