AGI – Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6% last month. The August data has been revised to show a rebound of 1.0% instead of the previously reported 0.8%. Estimates for September are + 0.5%. The index of personal consumption expenditure instead rose by 0.3% on a monthly basis and 4.4% annually.
The key component again in September, rising 0.2% on a monthly basis and 3.6% on an annual basis. On the other hand, per capita income fell by 1% due to lack of support for the epidemic.
New data from the U.S. Department of Commerce photographed the economic situation: Covid-19 cases led to a resurgence of delta variation in the summer. Shortage of workers in factories, In mines and ports, further emphasizes supply chains and raises labor costs to 1.3% against the expected 0.9%.
Despite rising personal consumption costs The third quarter of 2021, from the beginning of 2009, was the worst period for vehicle production due to the global shortage of semiconductors.. Car stocks are depleted and some shelves are left empty, pushing up costs and raising prices. So price pressures continue into September, while consumer purchasing power declines.
Excluding food and energy volatile components, the Consumer Price Index (PCE) price index rose 0.2% in August after gaining 0.3%. In the first 12 months of September, the Core PCE price index rose 3.6% after a similar gain in August.
The central PCE price index is the Federal Reserve’s preferred measure of inflation for its flexible 2% target. The central bank is expected to announce at next week’s policy meeting that it will begin to reduce the stimulus to payments to the economy through monthly bond purchases. Meanwhile, the U.S. economy is growing at a rate of 2%, the slowest since the second quarter of 2020, when the economy recorded a historic contraction against the backdrop of drastic measures to control the first waves of Govt-19 epidemics.
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