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Sunday, March 29, 2020
HomeNewsEconomyConsumer Spending Fizzles in October, Savings Rate Highest in 3 Years

Consumer Spending Fizzles in October, Savings Rate Highest in 3 Years

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A shopper organizes his cash before paying for merchandise at a Best Buy Co. store in Peoria, Illinois, U.S., on Friday, Nov. 23, 2012. (Photo: Daniel Acker/Bloomberg/Getty)

Consumer spending, which accounts for more than two-thirds of U.S. economic activity increased 0.1% in October, missing economists’ forecast for 0.3%. The Commerce Department reported on Wednesday that the savings rate hit the highest level in three years.

Personal income increased 0.4%, up from 2%, which came in matching expectations. Wages and salaries jumped by 0.6%, the largest increase since May. When adjusted for inflation, consumer spending gained 0.1 percent in October after rising by the same margin in September.

With income outpacing spending, savings rose, which could boost consumer spending in the coming months. Savings increased to $761.9 billion last month, the highest level since December 2012, from $722.9 billion in September.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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