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
