Market Wire, North America

US consumer spending grew and the Federal Reserve’s preferred inflation measure accelerated as expected in September, but income growth slowed – helping ratify the case for a plateau in benchmark interest rates near prevailing levels. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index – targeted by central bankers – rising 0.3 percent in September from the prior month, up 3.7 percent year-over-year – aligning perfectly with consensus estimates. The overall personal consumption expenditures index was up 3.4 percent from a year ago. Personal income rose 0.3 percent month-over-month, decelerating slightly from...

The American economy expanded more than expected in the third quarter, delivering booming growth even as soaring yields raised borrowing costs for businesses and consumers.  Data released by the Bureau of Economic Analysis this morning showed the economy expanding 4.9 percent in the July-through-September period, topping market consensus around 4.5 percent, and nearing the estimates provided by the Atlanta Federal Reserve’s nowcasting model.  Personal consumption surged 4 percent, marking the fastest pace since 2021 after rising just 0.8 percent in the second quarter. Residential investment broke a long series of losses in adding 0.15 percent, while non-residential fixed investment fell...

US consumer inflation accelerated more than expected last month, helping lift market expectations for at least one more move in the Federal Reserve’s tightening cycle. According to data published by the Bureau of Labor Statistics this morning, the headline consumer price index rose 3.7 percent in September from the same period last year, up 0.4 percent on a month-over-month basis. This was slightly hotter than consensus estimates among economists polled by the major data providers ahead of the release – which were set at 3.6 percent and 0.3 percent, respectively.  A rise in housing costs contributed more than half the...