The economy grew at a slower pace in the third quarter but consumer spending levels remain solid, according to the Federal Reserve Bank of New York’s latest Economy in a Snapshot report.
The Fed had predicted in its report released in October that, based on analysis of the previous two months of expenditure trends, consumer spending results likely would be strong in the third quarter.
Sentiment about the global economic outlook has improved and changes in the financial market have subsided since early October, according to the report, which highlights trends in consumer confidence and spending, GDP growth and more.
Real consumption expenditures grew 0.2% in September, after increasing 0.4% in August, according to the report, which includes data on financial indicators available through Nov. 11. Real consumer spending grew at a strong 3.2% annual rate in the third quarter, according to the report.
Consumers’ real disposable income also increased by 0.2% in September following an uptick of 0.4% in August. The personal saving rate increase slightly to 4.8% in September, making the third quarter average 4.7% compared to 4.6% in the second quarter, according to the report.
U.S. Economy in a Snapshot, established by the Fed in June, is designed to provide a condensed, comprehensive overview of current economic and financial developments.