Inflation Inches Higher as Economy Expands

By
Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Inflation pressures held steady in August after the recent surge in prices while consumer spending rose. The Federal Reserve's favorite inflation measure, the Core PCE, was unchanged monthly and annually up 0.3% and 3.6%, respectively. Within the numbers it showed that Personal Spending rose 0.8% as consumers spent on food and household goods along with recreational goods. Consumer spending makes up two-thirds of economic activity and is included in the Gross Domestic Product.

Two key economic reports came in better than expected ahead of next week's granddaddy of all report, the government's Jobs Report. The final read on Consumer Sentiment for September came in at 72.8 from 71.0 in August. The September ISM National Manufacturing report showed the index rose 61.1 from 59.9 in August. The employment component of the index also registered a gain. A spokesperson from the ISM said, "Business Survey Committee panelists reported that their companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing demand."

 

Inflation pressures hold steady. Personal Spending surges. Two key labor market reports due next week.

Comments (2)

KAREN SANCHEZ
Hamilton Landon Real Estate - Apple Valley, CA
...Marketing your home like no one else will.

Thanks for the good info. It's not cheery but we still need to know.

Oct 01, 2021 04:45 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Karen Sanchez got it right - not good news but that doesn't change the reality of the news

Oct 01, 2021 07:44 PM