For our good news segment for this week, let’s talk about a report from the Wall Street Journal on the Department of Commerce’s release of consumer spending numbers for October. Consumer spending in October rose 0.5 percent, which ordinarily would be a huge increase risk, but it’s down from the 1.2 percent increase from September.
We’ve all been watching how the economy’s doing since pretty much the whole country shut down for a time in March. Parts of the country opened up at different rates, and some parts of the country never opened up fully again. But why follow consumer spending? Because no businesses can do anything unless consumers are spending money. So this is great news!
Now, the pace of the increase has slowed down as we would expect, because in October, and certainly in November, many cities and states moved to lock back down because of spikes in coronavirus cases. So we would expect consumer spending to slow down again for November. However, then you’ve got the Christmas shopping season, which we also know will be heavily online this year.
Anyway, we’re very pleased that the economy is doing well. The stock market is at what some might think are insane levels, but the stock market is always looking six to 12 months down the road, and with the vaccines being released imminently and the distribution of vaccines being planned, the stock market is looking at the economy of this summer and certainly the latter half of 2021.
Happy Good News Friday! Check back next week for more content.