U.S. GDP grew, but consumption was squeezed by inflation
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AI-assisted source synthesis · not an independent investigation.
In the third quarter of 2026, the U.S. economy grew at an annualized rate of 3.4%, up from 2.2% in the second quarter. However, consumers were squeezed by inflation: nominal consumer spending increased by 0.5% in September, while prices also rose by 0.5% over the same period, leaving inflation-adjusted spending growth below 0.1%; real disposable income fell by 0.3%. Entering October, 22% of consumers said they had postponed major purchases. Among cardholders who live paycheck to paycheck and struggle to pay their bills, 40.7% reduced their full repayment of credit card balances. Reports indicate that while GDP continued to grow, households’ real purchasing power and consumption remained under pressure.
AI-written from reports · updated 2 hours ago
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- PYMNTSUS GDP grows, but inflation squeezes household purchasing power
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.
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