New orders for U.S. manufactured capital goods rebounded in October, driven by rising demand for machinery and a range of other equipment, the latest indication of an acceleration in economic growth early in the fourth quarter. The brightening economic outlook received a further boost from other data on Wednesday showing a jump in consumer sentiment this month in the wake of the election of Donald Trump as the next president. Consumers viewed the business mogul's victory as positive for their personal finances and the economy's prospects. While the number of people filing for unemployment benefits rose from a 43-year low last week, the trend in claims remained consistent with a tightening labor market. Overall, the tone of the reports was supportive of views that the Federal Reserve will raise interest rates next month.
WASHINGTON – Consumers barely boosted their spending in August, a sign that overall economic activity could be weaker this quarter. Consumer spending rose just 0.1 percent, following a much larger 0.3 percent advance in July, the Commerce Department reported Friday. It was the smallest gain since June. The August weakness reflected a big drop in sales of durable goods such as autos. Income growth slowed to a gain of just 0.2 percent.
FILE- In this Aug. 28, 2018, file photo cashier Liz Moore, right, checks out customers Christie Meeks, center, and Lisa Starnes, left, at a Kohl's store in Concord, N.C. On Friday, Sept. 28, the Commerce Department issues its August report on consumer spending, which accounts for roughly 70 percent of U.S. economic activity. WASHINGTON – U.S. consumer spending edged up a moderate 0.3 percent in August, the smallest gain in six months, as sales of cars and other durable goods fell. A key gauge of inflation slowed slightly after its biggest annual gain in six years. The rise in spending was the weakest since a 0.1 percent bump in February, the Commerce Department reported Friday.
U.S. consumer spending plunged by a record-shattering 13.6% in April as the viral pandemic shuttered businesses, forced millions of layoffs and sent the economy into a deep recession. Last month's spending decline was far worse than the revised 6.9% drop in March, which itself had set a record for the steepest one-month fall in records dating to 1959. Friday's Commerce Department figures reinforced evidence that the economy is gripped by the worst downturn in decades, with consumers unable or too anxious to spend much. Even with employers cutting millions of jobs, though, incomes soared 10.5% in April, reflecting billions of dollars in government payments in the form of unemployment aid and stimulus checks. Wages and salaries, normally the key component of overall income, sank by an annualized $740 billion in April.
U.S. consumer spending recorded its biggest increase in more than six years in April and inflation rose steadily, more signs of an acceleration in economic growth that could persuade the Federal Reserve to raise interest rates again as early as June. The Commerce Department said on Tuesday consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 1.0 percent last month as households bought automobiles and a range of other goods and services. Consumer spending in March was revised down to show it being flat instead of the previously reported 0.1 percent gain. Last month's increase was the largest since August 2009 and beat economists' expectations for a 0.7 percent rise. When adjusted for inflation, consumer spending shot up 0.6 percent, the biggest gain since February 2014, after being flat in March.