Consumer purchases climbed in September by the most in three months as incomes grew, signaling momentum in the biggest part of the U.S. economy.
The 0.5 percent advance in spending, which accounts for about 70 percent of the economy, followed a 0.1 percent decline the prior month that was revised lower, a Commerce Department report showed Monday. The median forecast in a Bloomberg survey called for a 0.4 percent gain.
While the results indicate a solid handoff into the final quarter of 2016, disposable income, or the inflation-adjusted money left over after taxes, was little changed for a second month, indicating wages will need to pick up to boost spending even more. Such support is needed to drive faster economic growth, which picked up last quarter despite softer household purchases.
Source: Consumer Spending in U.S. Climbs by Most in Three Months – Bloomberg
Twitter Inc. posted another quarter of slowing revenue growth Thursday and said it would slash 9% of its global workforce, in its first report since recent takeover interest from potential suitors including Salesforce.com Inc. dissipated.
The social-media company’s revenue rose 8.2% to $615.9 million, its smallest gain and ninth straight period of slowing growth. Analysts expected revenue of $606 million.
Twitter recorded a loss of $102.9 million, or 15 cents per share. Excluding certain expenses such as stock-based compensation costs, Twitter posted a profit of 13 cents a share, compared with the average analyst estimate of 9 cents per share
Source: Twitter to Cut 9% of Workforce as Revenue Growth Slows – WSJ
Orders for U.S. business equipment fell in September by the most in seven months, indicating corporate investment is having trouble gaining traction.
Bookings for non-military capital goods excluding aircraft dropped 1.2 percent, erasing a 1.2 percent August gain that was stronger than previously reported, Commerce Department data showed Thursday. The median forecast of economists surveyed by Bloomberg called for a 0.1 percent drop. Demand for all durable goods eased 0.1 percent.
Source: Orders for U.S. Capital Goods Decline by Most Since February – Bloomberg
The U.S. economy is delivering some of the best employment and income gains of the past 40 years, boosting workers in a way that recalls the boom years of the 1980s and 1990s.
But while the gains may help Hillary Clinton rebuff Donald Trump’s frequent attacks on the state of the nation and the Obama administration’s record, she would face a series of minefields if she wins the White House. As would Trump, if he pulls off a victory.
Economists say there is a one in five chance of recession next year. The Federal Reserve is on a march toward raising interest rates. And threats continue to flow from abroad, including the United Kingdom’s exit from the European Union and other signs of turbulence in the global economy.
A recession — or even a decline in economic momentum — could rapidly expose the new president to criticism and change the ability of the new administration to accomplish its goals.
Source: Why the good economy could be a problem for the next president – The Washington Post
Retail sales climbed in September by the most in three months, showing American shoppers began to spend freely again after shying away from merchants earlier in the quarter.
The 0.6 percent advance followed a revised 0.2 percent decline in August, Commerce Department figures showed Friday. So-called core sales, used to calculate gross domestic product, rose a smaller-than-projected 0.1 percent.
Source: Retail Sales in U.S. Rose in September by Most in Three Months