U.S. Consumer Spending Climbs as Job Gains Boost Wages

Consumer spending rebounded in August as employment gains revived household earnings growth and encouraged Americans to return to shops and car dealerships.

The 0.5 percent increase in purchases was more than forecast and followed little change in July, Commerce Department figures showed today in Washington. Incomes (PITLCHNG) advanced, rising 0.3 percent last month as wages and salaries climbed the most in three months.

Worker pay over the past 12 months is showing its biggest gains since the end of 2012, raising the odds for improving sales at companies such as Hooker Furniture Corp. The pickup in spending that accounts for almost 70 percent of the economy will help put the expansion on firmer footing as the housing market shows signs of fatigue.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.