US consumers spend despite high inflation and gas prices

Summarised from 2 outlets · Updated 15 Oct, 19:02 · Archive

American consumers continue spending despite higher prices driven by surging gas costs and inflation.

High gas prices are intensifying inflation in the United States, yet consumers are continuing to spend and sustaining economic growth. The government's producer price index jumped 6.3 per cent in September compared with a year earlier, the largest increase in nearly four years. On a monthly basis prices soared 1.3 per cent from August to September, driven by a 20 per cent rise in gas prices.

Data released Thursday showed that more expensive oil and gas are beginning to lift prices across other parts of the economy, including shipping and warehousing. Wholesale food prices also jumped, which could make groceries more expensive in the months ahead. At the same time, consumers ramped up their spending according to the same data release, with much of the increase reflecting higher prices rather than greater purchasing volume.

Jim Baird, chief investment officer at Plante Moran Financial Advisers, said consumers are choosing to spend despite inflation. 'Consumers may have gritted their teeth and looked through higher gas prices. They're not happy, but they're still spending,' he said. Workers are enjoying an unusual degree of job security despite scattered layoffs, which likely encourages spending even as surveys show many Americans have a gloomy economic outlook.

How it is being reported

• US consumers are muscling through higher prices, but for how long?High gas prices are intensifying inflation and vacuuming up more of Americans’ dollars, yet consumers are still digging deep to spend, powering the economy, at least for now.Clickorlando · 15 Oct, 18:20
• US consumers are muscling through higher prices, but for how long?High gas prices are intensifying inflation and vacuuming up more of Americans’ dollars, yet consumers are still digging deep to spend, powering the economy, at least for now.News4Jax · 15 Oct, 18:20

In this story: United States · Plante Moran Financial Advisers · Jim Baird

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem