Spending Is Up, Jobless Claims Are Down, But Confidence in US Economy Remains Iffy
In economic data released Wednesday, Americans are shown to be spending even as inflation rises, and applying for unemployment benefits at the lowest rate in decades, but experts are still concerned, according to The Associated Press.
The Commerce Department reported U.S. consumer spending rose by 1.3 percent in October, doubling the 0.6 percent gain from September. Prices, however, rose 5 percent compared with the same period last year, the fastest inflation rate over 12 months since the autumn of 1990.
“Although consumer confidence has declined in the fall because of high inflation, households continue to spend,” said Gus Faucher, chief economist at PNC Financial.
Personal incomes, one of the premier indicators of future spending, rose 0.5 percent in October following a 1 percent dip in September. The decline was explained by an end to some government support payment programs. The rise is likely explained by companies in severe need…
