Business News | US Consumer Spending Rises in September as Inflation Stays High at 3.6%
Get latest articles and stories on Business at LatestLY. US consumer spending increased in September as inflation remained elevated at 3.6 per cent on a year-on-year basis, according to data released by the US Bureau of Economic Analysis (BEA) on Thursday.
Washington [US], October 29 (ANI): US consumer spending increased in September as inflation remained elevated at 3.6 per cent on a year-on-year basis, according to data released by the US Bureau of Economic Analysis (BEA) on Thursday.
Personal consumption expenditures (PCE), a measure of consumer spending, increased by USD 113.1 billion, or 0.5 per cent, in September.
However, after adjusting for inflation, real consumer spending rose by less than 0.1 per cent during the month, indicating only a marginal increase in spending in volume terms.
The BEA said in its official statement, “The $113.1 billion increase in current-dollar PCE in September reflected increases of $35.1 billion in spending on goods and $78.1 billion in spending on services.”
Spending on services accounted for a larger share of the increase than spending on goods. Overall, personal outlays, which include consumer spending, personal interest payments and personal current transfer payments, increased by USD 113.0 billion in September.
The data also showed that personal income increased by USD 54.5 billion, or 0.2 per cent, in September. Disposable personal income, which is the income left after paying personal current taxes, rose by USD 52.7 billion, or 0.2 per cent.
Explaining the increase in income, the BEA said, “The increase in current-dollar personal income in September primarily reflected increases in compensation and government social benefits.”
Despite the rise in income and spending, inflation remained high. The PCE price index, which measures changes in prices paid for goods and services, increased by 0.5 per cent in September from the preceding month. On a year-on-year basis, it rose by 3.6 per cent.
Core PCE inflation, which excludes food and energy prices, increased by 0.3 per cent month-on-month and 3.1 per cent from the same month a year ago.
The difference between nominal and real spending growth highlights the impact of rising prices on consumer expenditure. While Americans spent more in dollar terms, real consumer spending increased by less than 0.1 per cent during September.
The BEA data also showed that personal saving stood at USD 911.1 billion, while the personal saving rate, measured as a percentage of disposable personal income, was 3.8 per cent in September.
The figures provide an update on US household income, spending and inflation as policymakers continue to monitor price pressures and consumer demand.
The BEA stated that the next data on personal income and outlays for October 2026 will be released on November 25. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)