US consumer spending continued to rise in August, driven by services spending. “The resilience of consumer spending and the stronger foundations strengthen our conviction that the near-term outlook for the economy remains bright,” says Michael Pearce, deputy chief US economist at Oxford Economics.

The 12-month change in US PCE inflation eased to 2.2% in August, down from 2.5% previously. Excluding food and energy, core PCE, increased 2.7%, slightly higher from the July reading. “All quiet on the inflation front,” says Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley. “Add PCE Price Index to the list of economic data landing in a sweet spot. Inflation continues to keep its head down, and while economic growth may be slowing, there’s no indication it’s falling off a cliff.”
A workers strike at ports along the entire US East and Gulf Coasts is set to start tomorrow, Tuesday, Oct. 1, without a break-through agreement today. The work stoppage occurs, it’s expected to block the flow of a wide variety of goods over the docks of almost all the cargo ports from Maine to Texas.
Mainland China stocks surged more than 8% on Monday — the best trading day in 16 years. The rise extends a rally sparked by news of new stimulus programs to support the weakening economy. Meanwhile, China’s economy weakened further in recent weeks, according to factory surveys released Monday.
US Consumer Sentiment Index continued to rebound in late September, rising to a five-month high, driven by optimism about the economy after the Federal Reserve cut interest rates. “Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten,” writes Joanne Hsu, director of the survey, in a statement. “At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.”