© Reuters. Mixed Signals on U.S. Economy Add to Volatility
Several statistics released by the U.S. government and private organizations on Friday gave mixed signals on the direction of the U.S. economy, adding to Wall Street volatility.
On one hand, data show that the rise in household spending that powered the economic recovery so far may be running out of steam.
Personal consumer spending rose faster than personal income. As a result, consumers either used credit, or dug up on their savings to pay for the extra spending, which is not a good sign for the ongoing economic recovery.
In addition, credit could become more expensive once the Fed begins tapering and savings are depleted. Both developments could slow down the pace of economic recovery.
Personal income in the United States increased at a monthly rate of 0.2% in August 2021, down from a 1.1% rise in July, slightly below the market expectations of a 0.3% gain….