Consumer Spending Up & Housing Continues Gradual Strengthening

Industry Updates  »  Consumer Spending Up & Housing Continues Gradual Strengthening

The Federal Reserve’s U.S. Economy in a Snapshot shows increases in consumer spending along with continued positive signals from the housing market.

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Other highlights are as follows:

• After declining in August, real consumer spending showed a strong rebound in September. Motor vehicle sales picked up notably in September and October after declining through much of the year.

Business equipment spending has been strong this year, with capital spending indicators pointing to solid growth in the near-term.

Housing indicators still point to continued gradual improvement in this sector. Multi-family starts remained appreciably below their recent peaks, but tight market conditions continued to promote a gradual rise in single-family starts.

Payroll growth recovered in October from the effects of Hurricanes Harvey and Irma. The unemployment rate, the employment-to-population ratio, and the labor force participation rate all declined. Growth of labor compensation remained subdued.

Monthly readings on PCE inflation indicated that core inflation continues to run somewhat below the FOMC’s longer-run objective.

• In the past month, U.S. equity indexes continued to rise and are at record highs. The nominal long-term Treasury yield was roughly unchanged and the U.S. dollar rose slightly.

The summary and full report can be accessed here:
https://www.newyorkfed.org/research/snapshot


 

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