Consumer spending rises more than expected

Before you go, we thought you'd like these...
Before you go close icon

Consumer spending rose more than expected in September, by 0.5%, according to the Commerce Department.

Spending increased as Americans spent more on durable goods — things built to last for long ranging from washing machines to chainsaws.

Personal income increased by 0.3%, less than expected, and amid a rise in employee compensation and nonfarm business earnings.

Economists had forecast that personal income and spending both rose 0.4% last month, according to Bloomberg.

18 PHOTOS
17 things you should always buy in bulk
See Gallery
17 things you should always buy in bulk

Cereal

Photo credit: Getty

School supplies

Photo credit: Shutterstock

Vitamins

Photo credit: Getty

Laundry detergent

Photo credit: Getty

Shampoo

Photo credit: Shutterstock 

Dried fruit

Photo credit: Getty

Alcohol

Photo credit: Getty

Office supplies

Photo credit: Shutterstock

Light bulbs

Photo credit: Getty

Rice

Photo credit: Getty

Aluminum foil

Photo credit: Getty

Batteries

Photo credit: Shutterstock

Spices and seasoning

Photo credit: Getty

Pet food

Photo credit: Alamy

Bottled beverages

Photo credit: Shutterstock

Paper plates and utensils

Photo credit: Getty

Gum

Photo credit: Getty

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

The personal saving rate inched lower to 5.7% from 5.8% in the prior month.

We also got a reading on inflation via personal consumption expenditures (PCE). Core personal consumption expenditures, which measures prices paid for things and services except food and gas, rose 1.7%, in line with the consensus forecast.

The leaves the Federal Reserve's preferred measure of inflation below the 2% target.

The advance estimate of third-quarter gross domestic product (GDP) released Friday showed that consumer spending remained the key driver of economic growth, even though it slowed a bit from the second quarter.

NOW WATCH: FEMA is tracking Hurricane Matthew using the 'Waffle House Index'

See Also:

SEE ALSO: A bubble might be brewing in bourbon


Read Full Story
Credit Card Compare

Credit Card Compare

Whether you're looking for great travel rewards or low annual fees, find the card that's right for you.

Compare Now

From Our Partners