U.S. News: Confident Consumers Spending More
Americans boosted their spending in September on everything from iPhones to restaurant meals in the latest sign that the consumer economy is gaining strength even as other sectors are weakening.</br></br>Retail and restaurant sales rose a seasonally adjusted 1.1% in September from August, and the Commerce Department boosted its estimate for sales over the summer. Sales have now climbed for three consecutive months after flagging during the spring.</br></br>The stronger retail numbers provide some of the first evidence rising consumer confidence is translating into actual spending. On Friday, a University of Michigan survey showed consumer sentiment hitting its highest level since before the recession.</br></br>Retail-sales figures can be volatile, especially during periods of rapidly changing energy prices or unstable economic conditions. But in this case, the three-month moving average, which smooths out month-to-month volatility, tells much the same story as the monthly data. The three-month average rose 1% in September, the second consecutive monthly increase. Over the past year, the three-month average is up 4.8% compared with 5.4% for the unaveraged data.</br></br>The stronger spending and confidence numbers, along with falling unemployment and rising home sales, mark real improvement in the consumer economy, said Paul Dales, an economist at forecasting firm Capital Economics. But Mr. Dales is more skeptical that the growth can continue amid weakness abroad and uncertainty at home.