consumer spending News Updates

Consumer prices rose 3.4% in August compared with a year earlier, the Commerce Department said. On a monthly basis, prices climbed 0.3%, up from 0.1% in July, a sign prices are still running hot.

Faced with high prices, dwindling savings and slowing wage growth, Americans are searching for deals and unique merchandise while shying away from big purchases. 

Business at clothing and accessories stores slipped 0.3%, while online sales rose 1.9%, fueled by spending surrounding Amazon's Prime Day event June 23-26.

Total spending for the period was up 9.3% from last year’s Prime Day sale, held in July, according to Adobe, which tracks visits to retail websites.

The Institute for Supply Management’s services index rose to a three-month high of 54.5. Readings above 50 indicate expansion.

The PCE jumped to 3.8% in April compared with a year ago, the Commerce Department said May 28, up from 3.5% in March and the highest since May 2023.

The rise in confidence comes as recent data has indicated the labor market is showing some signs of stabilization and inflation has been relatively tame.

Compared with a year ago, inflation rose 2.9% in December, up from 2.8% in November. That is the largest yearly increase since March 2024.

The Labor Department reported that its CPI was up 2.7% in November from a year earlier. Energy prices, driven up by higher fuel oil prices, rose 4.2%, and so-called core inflation was up 2.6%.

The U.S. housing market has weighed on Home Depot as high interest rates prompt consumers to remain on the sidelines for big-ticket purchases and projects that require financing.