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Another strong quarter?
The US labor market
is slowing and consumer sentiment
is declining again but, so far, Americans haven’t cut back on their spending.
That’s key because consumer spending is the lifeblood of the US economy, accounting for about two-thirds of economic output.
Against the odds, retail sales, which comprise a sizable chunk of overall spending, rose 0.6% in August from the prior month, according to Commerce Department data, following July’s 0.6% gain.
The government on Friday releases more comprehensive figures on consumer spending in August, which includes purchases of services, as part of its monthly Personal Consumption Expenditures report.
Still, an increasingly fragile labor market poses a risk to America’s economic engine, especially if layoffs start to climb.
New applications for unemployment benefits remained relatively low last week, the Labor Department said in a separate report released Thursday, but filings by federal workers who’ve been laid off have crept up in recent weeks, and could continue to climb.
In a separate report from the Commerce Department released Thursday, new orders for durable goods rebounded by a strong 2.9% in August, following two consecutive monthly declines, boosted by new orders for aircrafts and parts.