U.S. consumer spending stalled in September, signaling that Americans began tightening their budgets ahead of the government shutdown amid persistent inflation.
According to data released Friday by the Bureau of Economic Analysis, price-adjusted consumer spending showed almost no change in September, while August's growth was revised downward to 0.2%. The report, originally scheduled for October 31, was delayed due to the government shutdown.
The core Personal Consumption Expenditures (PCE) price index, excluding food and energy, rose 0.2% month-over-month and 2.8% year-over-year.
The Bureau of Economic Analysis stated that the next data release date has yet to be rescheduled.
The slowdown in spending suggests the economy's primary growth engine was decelerating even before the historic government shutdown began on October 1. More recent data indicates solid Black Friday sales, though consumer concerns about the job market are growing, with spending primarily driven by wealthier households.
Separate data released Friday showed the University of Michigan's consumer sentiment index rose in early December for the first time in five months, reflecting improved optimism about personal finances as inflation expectations eased.
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