Spending Remains High , As Americans Burn Through, Savings.<br />'Newsweek' reports that Americans' robust economic activity <br />in the third quarter came despite dwindling incomes <br />and savings amid high inflation and borrowing costs.<br />In Q3, the U.S. economy expanded by <br />almost 5% due to increased spending, <br />according to the Bureau of Economic Analysis.<br />In Q3, the U.S. economy expanded by <br />almost 5% due to increased spending, <br />according to the Bureau of Economic Analysis.<br />'Bloomberg' economist Eliza Winger <br />called it a "frenzy of summer <br />spending on travel and entertainment.".<br />However, 'Newsweek' reports that <br />the increased spending has taken <br />a toll on household pocketbooks.<br />Savings dropped to $776.9 billion in Q3, <br />falling from $1.04 trillion in Q2.<br />Meanwhile, personal income fell to $199.5 billion <br />in Q3, down from $239.6 billion in Q2.<br />At the same time, disposable income <br />rose by just 1.9%, compared <br />to a 6.1% increase in Q2. .<br />According to government data, consumers spent billions <br />on retail and food services in Q3 and expect to continue <br />spending during the upcoming holiday season.<br />According to government data, consumers spent billions <br />on retail and food services in Q3 and expect to continue <br />spending during the upcoming holiday season.<br />Earlier this week, American Express <br />predicted that travel and entertainment <br />spending would remain robust. .<br />Earlier this week, American Express <br />predicted that travel and entertainment <br />spending would remain robust. .<br />September saw sales of new single-family <br />homes increase by over 12% compared to <br />August and jump by almost 34% compared to 2022
