Consumer Spending Improves In October

spendConsumer spending increased modestly in October as falling oil prices helped Americans to have more disposable income at the cash register.

Consumer spending which accounts for two thirds of economic activity in the U.S. economy, increased 0.2 percent in October, slightly missing the estimate of 0.3 percent from briefing.com but surpassing 0 percent  in September, the Commerce Department reported on Wednesday.

Personal income increased 0.2 percent in October, missing the 0.5 percent estimate from briefing.com, but matching the same 0.2 percentage increase in September.

Private wages and salaries increased $18.8 billion in October, higher than $13.9 billion in September.

Supplements to wages and salaries increased $3.8 billion in October, compared with an increase of $3.9 billion in September.

According the U.S. Census Department, new orders for manufactured durable good jumped 1 billion or 0.4 percent to 243.8 billion, beating the estimate of -0.7 percent from briefing.com. and rising above September’s -0.9 decrease.

October’s increase in new orders reverses the trend of two consecutive months of declines.

Excluding transportation, new orders decreased 0.9 percent. Excluding defense, new orders decreased 0.6 percent.

Initial jobless claims rose above 300,000 last week, the first time since September.

-Johnathan Schweitzer

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