How Did Consumers Spend in October?
Consumer spending rose 0.4% in October, reflecting a $72.3 billion increase in outlays. The bulk of this growth came from services, particularly in healthcare and housing, while goods spending dipped slightly, weighed down by reduced gasoline purchases. Adjusted for inflation, real PCE inched up just 0.1%, showing limited improvement in consumers’ purchasing power.
Despite the slowdown in spending growth compared to September’s 0.6%, the steady rise signals resilience among consumers even amid elevated prices.
