American spending rose in August, driven by the rise in consumer morale, which indicates an improvement in the US economy. At the same time, inflation rose in August slightly, to record 4.3% annually, compared to the previous month, by 4.2%, according to data from the Bureau of Economic Analysis, and personal income rose by 0.2%.
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According to the consumer expenditures price index, core inflation stabilized at 3.6%, and core inflation is not affected by the volatile food and energy prices. Consumer spending in August increased by 0.8%
In a related context, the US economy grew at a slightly faster pace than initially thought in the second quarter of the year, which raised the level of gross domestic product beyond the pre-pandemic peak, as it supported spending thanks to significant fiscal stimulus and anti-Covid-19 vaccinations.
The US Department of Commerce announced that the gross domestic product increased at an annual rate of 6.6%, and this growth rate was adjusted from 6.5% in July, according to “CNBC Arabia”, so that the US economy achieved growth that caused a raise in the level of gross domestic product.
At a time of improvement in consumer spending, experts at the American investment bank Goldman Sachs Group expect that the growth of the US economy will decline by 5.7% of GDP, not by 6%.
Earlier, Goldman Sachs Bank’s expectations for the growth of the US economy this year fell to 6%, after it was 6.4% during 2021, due to the effects that exceeded expectations for the delta axis from Corona, which created disruptions in supply chains and raises inflation.
The US Commerce Department said last month that gross domestic product increased at an annualized pace of 6.5% in the second quarter. The economy grew at an adjusted pace of 6.3% in the first quarter.
It is noteworthy that stocks of crude oil and gasoline in the United States fell last week, while stocks of distillates rose, according to figures from the American Petroleum Institute.