US Consumer Spending Stalled In September, Inflation In Line

US consumer spending stalled in September, suggesting Americans were already stretched going into the government shutdown in the face of stubborn inflation.

Consumer spending, adjusted for changes in prices, was little changed in September, according to Bureau of Economic Analysis data out Friday. That followed a downwardly revised 0.2% advance in August. The report was scheduled for release on Oct. 31 but was delayed by the government shutdown.

The so-called core personal consumption expenditures price index, which excludes food and energy items, rose 0.2% from August, according to Bureau of Economic Analysis data out Friday. From the prior year, it was up 2.8%.

The BEA said the next release is yet to be rescheduled. 

The pullback among consumers suggests the US economy’s main growth engine was slowing before the longest-ever government shutdown started on Oct. 1. More recent data show that Black Friday sales were solid as shoppers searched for deals, but consumers are increasingly anxious about the job market and spending is largely being driven by wealthier households.

Separate data Friday showed consumer sentiment rose in early December for the first the first time in five months. The increase in the University of Michigan’s index reflected more optimism about the outlook for personal finances as inflation expectations improved.