In September, the United States recorded an increase in consumer spending, which is evidence of the sustainability of the country’s economic system, which is currently getting a boost from the Federal Reserve System.
The mentioned information was published on Thursday, October 17, by the US Commerce Department.
According to the advance report, retail sales in the United States last month showed a seasonally adjusted growth of 0.4% compared to the figure recorded in August. It is worth noting that the Dow Jones forecast provided that this indicator would increase by 0.3% in September.
Excluding statistics on the car market, sales in the United States accelerated by 0.5% last month.
The data released on Thursday shows that consumers, who account for about two-thirds of all economic activity in the US, continue to spend money. At the same time, the United States labor market, despite various potential risks and signs of weakening recorded in the summer, continues to hold up.
Last month, in the US at miscellaneous store retailers, spending increased by 4%. In clothing stores, this figure rose by 1.5%. In bars and restaurants, spending increased by 1%. It is worth noting that this upward dynamic offset a 1.6% drop in the mentioned indicator at gas stations against the background of lower fuel prices. Also, the specified dynamic offset decreased spending by 3.3% in electronics and appliance stores and by 1.4% in furniture and home furnishing businesses.
In September, sales in the United States increased by 1.7% year-on-year. It is worth noting that these data were recorded in the month when the Fed began to ease monetary policy by deciding to cut interest rates by a half percentage point. Moreover, the central bank of the United States stated that new such decisions are likely before the end of the current year and during 2025.
Currently, US policymakers are demonstrating confidence that inflation is on a trajectory of a gradual return to the Fed’s 2% target. At the same time, they are concerned about the deteriorating situation in the United States labor market, despite strong September payrolls growth.
