Consumer Spending Slows in September; Bank Of Japan Increases Stimulus

spendingConsumer spending slowed in September due in part to lower oil costs, slower wage growth, and weaker automobile sales.

According to the Department of Commerce, personal consumption expenditures (PCE) decreased $19.0 billion, or 0.2 percent, slightly missing the forecast of 0.3 percent from briefing.com.

In August, personal income increased $50.7 billion, or 0.3 percent.

Private wages and salaries increased $12.6 billion in September, compared with an increase of $36.3 billion in August.

Bank of Japan

The Bank of Japan decided to jump start their monetary stimulus program on Friday to an annual pace of 80 trillion yen (an addition of 10-20 trillion yen). The Bank will also purchase exchange traded funds (ETF’s) and Japanese real estate trusts (J-Reit) so that their amount outstanding will increase at an annual pace of 3 trillion yen and about 90 billion yen.

-Johnathan Schweitzer

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