supermarket g203aa209e 1280 US consumer spending rises more than expected in September

US consumer spending rises more than expected in September

US consumer spending rose more than expected in September, while core inflation continued to pressure in the world’s largest economy, keeping the US Federal Reserve on the path of tight monetary policy, and boosting expectations that it will raise interest rates by 75 basis points for the fourth time this year.

And the US Commerce Department said , on Friday, that consumer spending, which accounts for more than two-thirds of economic activity in the country, rose by 0.6 percent in September, compared to an expected rate of 0.4 percent.

The ministry revised the August data up to 0.6 percent, instead of the previous rate of 0.4 percent.

According to the statement, the data was included in the GDP report for the third quarter of the year, which was released Thursday, to show the recovery of economic growth in America , after the contraction in the first half of the year.

The 2.6 percent annual growth pace last quarter was largely driven by a sharp contraction of the trade deficit.

US consumer spending growth slowed in the fourth quarter to 1.4 percent, compared to 2 percent in the April-June quarter.

Domestic demand in the fourth quarter was the weakest in two years.

The annual inflation rate  in the United States in September slowed slightly to 8.2 percent, compared to last August’s reading of 8.3 percent.