US GDP grows, but inflation squeezes household purchasing power

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The US economy grew at an annualized rate of 3.4% in the third quarter, up from 2.2% in the second quarter, but September consumer spending growth was almost fully offset by inflation. Nominal consumer spending and prices both rose 0.5% in September, while inflation-adjusted spending increased by less than 0.1% and real disposable income fell 0.3%. In October, 22% of consumers postponed major purchases, while 40.7% of cardholders living paycheck to paycheck and struggling to pay their bills paid off their balances in full less often.