US household spending rose 4.9% in the latest data, according to government figures, as consumers continued to spend despite higher prices and economic uncertainty. The increase, measured on an annual basis, was driven by spending on services — including travel, dining and healthcare — as well as goods. Economists say the resilience of consumer spending has been a key support for economic growth, even as households face pressure from housing and insurance costs. The data aligns with the broader picture of an economy that, while slowing in some areas, has not tipped into recession. Retailers reported solid sales in recent months, and the holiday season is expected to bring further spending, though at a more moderate pace. Analysts caution that spending growth driven by credit rather than income gains could prove unsustainable, and will be watching delinquency rates closely. For now, however, the American consumer continues to defy predictions of a pullback.
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