Private consumption in the USA is increasing despite rising inflation figures and key interest rates. According to the Ministry of Commerce, it rose by 0.7% in September compared to the previous month.
Surprisingly, American consumers are willing to spend despite high inflation and sharp rises in key interest rates. Their consumption in September increased by 0.7% compared to the previous month, the Ministry of Commerce announced Friday. Economists polled by Reuters had expected an increase of only 0.5%, after a 0.4% increase in August. Private consumption constitutes the mainstay of the US economy, which has recently succeeded in significantly increasing its growth rate despite the rise in key interest rates.
the GDP rose from July to September This is the highest annual rate of increase of 4.9% in nearly two years, after growth of just 2.1% in the spring. This is also guaranteed by consumers who increased their consumption by 4% in the last quarter.
The US Federal Reserve wants to limit high inflation at 3.7% without stifling the economy. It recently left its key interest rate in a range of 5.25 to 5.5% and is likely to pause again next week. What happens next in December is uncertain. The Fed wants to be guided by incoming data about the future interest rate path.
One measure of inflation that monetary authorities closely monitor is consumers’ personal spending. Volatile food and energy costs are excluded. As experts had expected, this core indicator of personal consumption expenditures fell to an annual inflation rate of 3.7% in September, after a downwardly revised rate of 3.8% in August.