Consumer spending in the US has risen for 4 months in a row. Stronger gains in income have propelled this rise in consumer spending. These 2 instances have ensured a good start to the US economy in the third quarter as well.
The 0.3% rise in consumer purchases is in line with the predictions. The previous month had seen an increase of 0.5%. The Commerce Department in Washington has published reports to confirm this. Incomes have seen a rise of 0.4% in this month. It is the highest in the last 3 months.
Improvements in the job sector, coupled with low fuel costs, have enabled Americans to have a continued increase in their expenditures. Economists have projected this as a rebound in expansion for this quarter. The first half of 2016 has been the weakest since 2011.
Outlay costs for households such as salary, rents, and maintenance, after being adjusted with inflation, have risen by 0.2%. Other services included in outlays are legal help, tourism, health care, and personal care. Personal care would mean something like getting haircuts or going to the spa and so on.
Disposable income, after adjusting with inflation, has reported a growth of 0.4%. It is the maximum growth recorded this year. It was 0.2% in June. The gross domestic product has increased by an annualized rate of 1.1% between April and June.