Consumer expenditure in the United States increased significantly in September, driven by increased purchases of motor vehicles and travel.

This trend has contributed to sustained growth in consumer spending as the economy enters the fourth quarter.

The Commerce Department’s report revealed a surge in expenditure, surpassing initial expectations, and was followed by heightened monthly inflation readings.

However, expenditure is expected to decrease in the beginning of 2024 due to the depletion of surplus reserves amassed during the pandemic.