[ad_1]
Consumer spending remained strong in September, indicating a robust economy boosted by the Federal Reserve, according to the latest report from the Commerce Department.
Retail sales showed a 0.4% increase last month, surpassing the forecasted 0.3% and improving from August’s 0.1% gain. Excluding auto sales, there was a 0.5% acceleration, exceeding expectations for a 0.1% rise. These adjusted numbers do not factor in Inflation, which rose by 0.2% in September based on the consumer price index.
Meanwhile, initial unemployment claims totaled 241,000, a decrease of 19,000 from the previous period and lower than the expected 260,000, as reported by the Labor Department. Despite the recent hurricanes causing significant damage in the Southeast, both Florida and North Carolina saw a decline in filings after a previous increase.
The reports prompted a positive reaction in both stock market futures and Treasury yields, indicating consumer spending is still driving economic activity. While some sectors like gas stations, electronics stores, and furniture businesses experienced declines, miscellaneous store retailers, clothing stores, and bars and restaurants saw growth.
On a year-over-year basis, sales were up by 1.7%, slightly lower than the 2.4% rise in the consumer price index for the same period.
Following the Fed’s rate cut and plans for further reductions, policymakers are optimistic about Inflation returning to target levels but remain concerned about softening labor market conditions.
Aside from the economic updates, the European Central bank also made a rate cut announcement, echoing similar sentiments on Inflation and economic slowdown concerns.
Despite an overall decline in initial filings, continuing claims inched higher to 1.867 million. Additionally, the Philadelphia Fed’s manufacturing activity index rose to 10.3 in October, indicating expansion in the sector.
[ad_2]
SOURCE
Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.