Weekly economic review & outlook
Another spending surge for September
October 19, 2020
You Need to Know
Week in review
Retail sales up sharply for September
Spending at the retail level beat expectations with a 1.9 percent jump spread strongly across a broad set of categories.
Consumer inflation slows from recent trend
The consumer price index rose by a more modest 0.2 percent for September while core prices also slowed from faster gains over the previous two months.
Housing starts likely to rebound
After a small step back in August, housing starts should climb as single-family starts continue to move higher and multifamily starts rebound.
Existing home sales should continue to climb
Continued strong demand factors should push existing home sales higher for September, as indicated by another gain in pending home sales.
Despite the slowdown in job gains and the end of the federal government addition to weekly unemployment payments, consumers still spent strongly in September. Retail sales jumped by 1.9 percent for the month, nearly double market expectations. This pushed up total sales to more than 3.7 percent above the pre-COVID peak from January and by a solid 5.4 percent from a year earlier.