U.S. Commerce reports rise in consumer spending
The news comes on the heels of report by Commerce showing a slight surge in total retail sales
The U.S. Commerce Department’s Bureau of Economic Analysis today released data on personal income and outlays for October 2010 which should make an impact on supply chains.
According to Chris G. Christopher, Jr., Ph.D.Senior Principal Economist U.S. Macroeconomics at IHS Global Insight, cash-rich companies may be ready to spend again, too.
“And that would put more goods in circulation,” he said, “thereby driving more trade and commerce.”
Personal income increased 0.5 percent in October, supported by a strong gain in wages and salaries. This increase slightly exceeded private-sector expectations of a 0.4-percent increase. Real consumer spending rose 0.3 percent in October, supported by a surge in purchases of motor vehicles. Personal income and consumer spending gains in October are consistent with private-sector expectations of moderate growth in gross domestic product (GDP) during the fourth quarter.
“Today’s figures represent a solid start to spending in the fourth quarter,” said U.S. Commerce Department Acting Deputy Secretary Rebecca Blank. “However, high unemployment remains an impediment to stronger gains in personal income, consumer spending and overall economic growth in the coming quarters, which is why the president and this administration remain focused on supporting job creation for the American people.”
The news comes on the heels of report by Commerce showing that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1.2 percent seasonally adjusted over September and 5.4 percent unadjusted year-over-year.
Cooler, seasonal weather in October helped apparel and sporting goods stores’ sales. Clothing and clothing accessory stores sales increased 0.7 percent seasonally adjusted over last month and 1.4 percent unadjusted over last year. Sales at sporting goods, hobby, book and music stores increased 1.0 percent seasonally adjusted month-to-month and 5.9 percent unadjusted year-over-year.
Building material and garden equipment and supplies dealers sales also showed solid growth, increasing 1.9 percent seasonally adjusted month-to-month and 7.3 percent unadjusted over last year. Health and personal care stores sales decreased 0.1 percent seasonally adjusted from September but increased 1.6 percent unadjusted year-over-year.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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