U.S. consumer spending increased solidly in September, but was partly flattered by higher prices as inflation remained hot amid shortages of motor vehicles and other goods in the face of global supply constraints. Fred Katayama reports.
The spread of the Delta variant didn’t stop resilient Americans from spending in September.
The Commerce Department reported Friday that consumer spending rose 0.6% last month, topping economists forecasts. But it slowed from the 1% rebound in August.
Part of the reason Americans spent more money: they had to shell out more to buy what they wanted. Inflation remained hot amid shortages of cars and other goods.
Consumer spending is closely watched because it accounts for more than two-thirds of U.S. economic activity.
On Thursday, the Commerce Department reported that growth in consumer spending hit the brakes in the most recent quarter, falling to a 1.6% annualized rate from 12% in the previous quarter.
