Despite the ongoing uncertainty of the economy due to coronavirus, U.S. households increased their spending in September by 1.4%. This is due to the higher pay and remaining pandemic aid which therefore helped to boost incomes. Additionally, personal-consumption expenditures also rose in September, according to the Commerce Department. This rise in personal income also reflected an increase in employee compensation. Companies like Mattel Inc. and Chipotle posted strong quarterly sales figures, which reflects the increased interest of American households for food that can be ordered online as well as in-home entertainment.
After a sharp decline in August, personal income increased 0.9% from last month.
After being surveyed from The Wall Street Journal, economists expected a 1% increase in spending and 0.5% increase in personal income.
U.S. GDP rose to a record 7.4% in the third quarter