Everyday Economics: Will the current productivity boom fizzle out?

Last week, retail sales data confirmed that the financial condition of most households may have somewhat stabilized. Strong wage growth and a sharp decline in energy prices are supporting household consumption. Retail sales exceeded expectations, rising 0.

4% in September, up from 0.1% in August, while core retail sales increased by 0.7%.



Housing market data also revealed higher-than-expected activity last month, driven largely by a significant drop in mortgage rates in September. The Federal Reserve Bank of Atlanta's GDPNow estimate for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2024 increased to 3.4% last week, up from 3.

2% the previous week and 2.5% the month prior..