(MENAFN- Saudi Press Agency) U.S. consumers spent slightly more in October, a small improvement after no gain in the previous month, the government reported Wednesday.
The Commerce Department said consumer spending rose 0.2 percent last month, following a flat reading in September. The rise reflected a 0.2 percent increase in spending on non-durable goods such as clothing and a 0.3 percent rise in spending on services such as utility payments and rent. Spending on durable goods such as vehicles fell 0.2 percent.
Personal income grew 0.2 percent in October. The small rise in spending and income left the savings rate unchanged at 5 percent of after-tax income.
Inflation was nearly absent, with a price gauge tied to spending rising by only 1.4 percent over the past 12 months, well below the 2 percent target for inflation favored by the Federal Reserve (Fed).
In Tuesday€„¢s gross domestic product (GDP) report, the government said consumer spending€"which accounts for 70 percent of U.S. economic activity€"grew at a 2.2 percent annual rate in the third quarter.
Economists believe spending will remain solid in the current October-December quarter due to gains in employment and declining gasoline prices, which give people more money to spend elsewhere. The National Retail Federation, a trade group, is forecasting that holiday sales will rise 4.1 percent this year, compared to 2013. It would be the biggest gain in three years.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.