On Friday, the US Commerce Department had revealed another set of upbeat economic data ahead of a November 3 US Presidential election as US Consumer Spending, the “tree of life” for a slowing US economy accountable for roughly two-thirds of the world’s No.
1 economy’s entire fiscal activities, beat analysts forecasts on September, though worries were rising among hundreds of thousands of laid-off Americans in context of a decline in Government spending on state unemployment benefits.
In tandem, followed by the reveal of Friday’s US Commerce Department data, several analysts were quoted saying that a failure for the Trump Administration to reach another round of trillion-dollar pandemic stimulus before the election day coupled with a pandemic resurgence across the United States that stokes fears of a renewed lockdown, would likely lead to a clattering clamp-down on consumer spending over the fourth quarter of the year.
US Consumer spending rose 1.4 per cent in September
In point of fact, the report from the US Commerce Department came forth a day after the US Government had reported the country’s largest ever quarterly GDP gains, though optimisms remained muted amid a stiffer forced business closure measures in a number of densely populated US cities.
Nonetheless, according to the US Commerce Department’s report, US consumer spending grew by 1.4 per cent last month that followed a rise of 1 per cent in August on an adjusted basis, while other economic data released on Friday had reflected a tepid inflation last month which would likely to proffer the US Federal Reserve ample room to keep the country’s benchmark interest rates near-zero for quite a while as the Government appeared to have run out of liquidities to back the nation’s economic growth from a pandemic-induced slump.
Meanwhile, adding that the September gains in US consumer spending would unlikely to sustain without further fiscal stimulus, a chief economist at PNC Financial in Pittsburgh, Gus Faucher said, “This recovery could be at risk without additional stimulus, as households with unemployed workers find themselves stretched financially heading into the holiday shopping season.
Personal income and consumer spending could also take a big hit if the pandemic continues to spread and states re-impose restrictions on economic activity in response. ”