U.S. consumer spending increased more than expected in October as households bought a range of goods, showing no signs yet of holding back because of high inflation
The Commerce Department said on Wednesday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.3% last month after rising 0.6% in September. Spending was partially boosted by higher prices as demand continues to outpace supply.Register now for FREE unlimited access to reuters.
Consumer spending is accelerating after slowing sharply in the third quarter as COVID-19 infections driven by the Delta variant flared up and shortages of goods became more widespread. Fears of empty shelves and paying even more for scarce goods have encouraged Americans to start their holiday shopping early.
"Moreover, continued clogged supply chains and port delays could lead to product scarcities on shelves as cargo ships remain anchored offshore waiting to be unloaded at the large ports in Southern California," said Scott Anderson, chief"Both scenarios have the potential to put a damper on these optimistic holiday sales projections."
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