Spending Remains High , As Americans Burn Through, Savings.
'Newsweek' reports that Americans' robust economic activity
in the third quarter came despite dwindling incomes
and savings amid high inflation and borrowing costs.
In Q3, the U.S. economy expanded by
almost 5% due to increased spending,
according to the Bureau of Economic Analysis.
In Q3, the U.S. economy expanded by
almost 5% due to increased spending,
according to the Bureau of Economic Analysis.
'Bloomberg' economist Eliza Winger
called it a "frenzy of summer
spending on travel and entertainment.".
However, 'Newsweek' reports that
the increased spending has taken
a toll on household pocketbooks.
Savings dropped to $776.9 billion in Q3,
falling from $1.04 trillion in Q2.
Meanwhile, personal income fell to $199.5 billion
in Q3, down from $239.6 billion in Q2.
At the same time, disposable income
rose by just 1.9%, compared
to a 6.1% increase in Q2. .
According to government data, consumers spent billions
on retail and food services in Q3 and expect to continue
spending during the upcoming holiday season.
According to government data, consumers spent billions
on retail and food services in Q3 and expect to continue
spending during the upcoming holiday season.
Earlier this week, American Express
predicted that travel and entertainment
spending would remain robust. .
Earlier this week, American Express
predicted that travel and entertainment
spending would remain robust. .
September saw sales of new single-family
homes increase by over 12% compared to
August and jump by almost 34% compared to 2022
