Please ensure Javascript is enabled for purposes of website accessibility
Consumer Spending up a Slight 0.5% as Virus Maintains Grip
gvw_ap_news
By Associated Press
Published 4 years ago on
November 29, 2020

Share

WASHINGTON — U.S. consumers increased their spending by a sluggish 0.5% last month, the weakest rise since April, when the pandemic first erupted, and a sign that Americans remain wary with the virus resurging across the country and threatening the economy.

The October gain reported Wednesday by the Commerce Department followed a seasonally adjusted 1.2% increase in September. It suggested that consumer spending, the primary driver of the U.S. economy, is being restrained by a weakened economy and by the failure of Congress to provide another stimulus package to struggling individuals and businesses.

The October gain reported Wednesday by the Commerce Department followed a seasonally adjusted 1.2% increase in September.

The government’s report also showed that income, which provides the fuel for spending, fell 0.7% in October.

With new viral cases accelerating across the country, many states are adopting or considering new restrictions on businesses. Sales at restaurants and bars fell in October for the first time in six months. Restaurant traffic declined further this month, according to the reservations provider OpenTable. Hotel occupancy is down from a month ago. Consumer spending on credit cards dropped in the first week of November from a month earlier, according to data compiled by Opportunity Insights.

Economists warn that consumer spending could falter further in the current October-December quarter given that many of the major government support programs have expired and Congress has yet to renew the assistance.

“With coronavirus infection rates soaring, states re-imposing restrictions and the … data on in-person dining and jobless claims beginning to show signs of weakness, we are increasingly worried that the monthly gains in consumption will be weaker,” Paul Ashworth, chief U.S. economist at Capital Economics, wrote in a research note.

The report showed that while the wages-and-salaries component of consumer income rose 0.7% in October, government transfers — the category that includes unemployment aid and other benefits — fell 6.2%.

Inflation, as measured by a gauge tied to consumer spending, was unchanged in October. Measured year over year, it’s up just 1.2%. That is far below the 2% annual target set by the Federal Reserve, and it gives the Fed further leeway to supply support to the economy beyond the ultra-low interest rates it is already providing.

RELATED TOPICS:

DON'T MISS

Here’s How the New NFL Rules on Kickoffs and Overtime Will Work

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Yakista Ceeblaj Lor

DON'T MISS

Inside a $17 Billion Maintenance Backlog Plaguing California’s Universities

DON'T MISS

Webb Pitches 7 Strong Innings as Giants Beat Astros

DON'T MISS

Curry Drops 52 as Warriors Beat Grizzlies, Move into Fifth in West

DON'T MISS

Dodgers Extend Perfect Start Behind May and Betts’ Heroics

DON'T MISS

Fresno County Authorities Seeks Public’s Help in Finding Family of Man Killed by Vehicle

DON'T MISS

California Lawmakers Reject Bills to Restrict Transgender Youth in School Sports

DON'T MISS

Crawford’s Win Secures Liberal Majority on Wisconsin Supreme Court, Deals Blow to GOP

DON'T MISS

Tesla Sales Tumble 13% as Musk Backlash, Competition and Aging Lineup Turn off Buyers

UP NEXT

Lakers Hold Off Rockets With 6 3-Pointers Apiece From Dorian Finney-Smith, Gabe Vincent

UP NEXT

Athletics Bat Boy Stewart Thalblum Takes Down Drone in Left Field

UP NEXT

NFL Postpones Tush Push Decision but Passes Other Rule Changes, AP Source Says

UP NEXT

March Madness: It’s South Carolina vs. Texas and UCLA vs. UConn in Women’s Final Four

UP NEXT

Major Layoffs Begin at Health Agencies That Track Disease and Regulate Food

UP NEXT

U.S. Bank Executive Terry Dolan Dies in Plane Crash Near Minneapolis

UP NEXT

Top Vaccine Official Resigns From FDA, Criticizes RFK Jr. for Promoting Misinformation, Lies

UP NEXT

Utah Becomes the First State to Ban Fluoride in Public Drinking Water

UP NEXT

Wilmer Flores’ 3-Run Homer in the 9th Inning Propels Giants to Victory Over Reds

UP NEXT

Democrats’ Popularity Plummets, yet Midterm Prospects Remain Strong

Webb Pitches 7 Strong Innings as Giants Beat Astros

46 minutes ago

Curry Drops 52 as Warriors Beat Grizzlies, Move into Fifth in West

53 minutes ago

Dodgers Extend Perfect Start Behind May and Betts’ Heroics

1 hour ago

Fresno County Authorities Seeks Public’s Help in Finding Family of Man Killed by Vehicle

1 hour ago

California Lawmakers Reject Bills to Restrict Transgender Youth in School Sports

1 hour ago

Crawford’s Win Secures Liberal Majority on Wisconsin Supreme Court, Deals Blow to GOP

1 hour ago

Tesla Sales Tumble 13% as Musk Backlash, Competition and Aging Lineup Turn off Buyers

1 hour ago

Israel’s Operations in Gaza Expands to Seize ‘Large Areas.’ Palestinians Say Dozens Killed

2 hours ago

Forecasters Warn of Deadly Floods and Strong Tornadoes in Parts of the Midwest and South

2 hours ago

Val Kilmer, ‘Top Gun’ and Batman Star With an Intense Approach, Dies at 65

2 hours ago

Here’s How the New NFL Rules on Kickoffs and Overtime Will Work

The one-year trial version of the dynamic kickoff in the NFL led to an uptick in the return rate that wasn’t quite as much as the leag...

30 minutes ago

The Kansas City Chiefs kickoff to the Philadelphia Eagles at the start of the NFL Super Bowl 59 football game, Sunday, Feb. 9, 2025, in New Orleans. (AP File)
30 minutes ago

Here’s How the New NFL Rules on Kickoffs and Overtime Will Work

Yakista Ceeblaj Lor is Valley Crime Stoppers' Most Wanted Person of the Day for April 2, 2025. (Valley Crimes Stoppers)
41 minutes ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Yakista Ceeblaj Lor

42 minutes ago

Inside a $17 Billion Maintenance Backlog Plaguing California’s Universities

47 minutes ago

Webb Pitches 7 Strong Innings as Giants Beat Astros

Golden State Warriors guard Stephen Curry (30) reacts in the second half of an NBA basketball game against the Memphis Grizzlies Tuesday, April 1, 2025, in Memphis, Tenn. (AP/Brandon Dill)
53 minutes ago

Curry Drops 52 as Warriors Beat Grizzlies, Move into Fifth in West

Los Angeles Dodgers' Mookie Betts hits a two-run home run against the Atlanta Braves during the sixth inning of a baseball game Tuesday, April 1, 2025, in, Los Angeles. (AP/Kevork Djansezian)
1 hour ago

Dodgers Extend Perfect Start Behind May and Betts’ Heroics

The Fresno County Coroner’s Office is seeking the public’s help in locating the family of Oscar Alcoser, 46, who was fatally struck by a vehicle in Fowler on Tuesday, March 25, 205. (Fresno County SO)
1 hour ago

Fresno County Authorities Seeks Public’s Help in Finding Family of Man Killed by Vehicle

Student athletes hold signs during a hearing to consider bills to pass rules banning transgender student-athletes Tuesday, April 1, 2025, in Sacramento, Calif. (AP/Yuri Avila)
1 hour ago

California Lawmakers Reject Bills to Restrict Transgender Youth in School Sports

Help continue the work that gets you the news that matters most.

Search

Send this to a friend