Consumer Spending Beat Expectations in September
October 30, 2020
Consumer spending in the U.S. improved by more than expected last month, climbing 1.4% following a 1% increase in August. Economists polled by Reuters had forecast a 1% increase.
Personal income saw an increase of 0.9%, also topping economist expectations of a 0.4% increase. Personal income fell by 2.7% in August after the expiration of enhanced unemployment benefits.
Despite the strong months, economists worry that spending may slow in the coming months as coronavirus cases continue to climb in many parts of the country. Consumer spending accounts for more than two-thirds of total economic activity, so any slowdown could stall the momentum of the economic recovery.