Afternoon Coffee: Household spending, higher incomes help U.S. economy; gas companies struggle through pandemic; SIG one-day event next week; PRO Recap: BlueSnap, VNDLY

astrosystem/Adobe Stock

The Commerce Department reported this week that U.S. households boosted spending by 1.4% in September as higher pay and COVID-19 pandemic aid boosted incomes, according to the Wall Street Journal.

Personal-consumption expenditures, a measure of household spending on goods and services, rose in September. Meanwhile, personal income — the total of what a household receives from wages and salaries, government aid and investments — was up 0.9% last month after a decline in August, the article reported.

Consumers boosted outlays on autos, clothing, healthcare, fitness and entertainment services. Richard Moody, an economist at Regions Financial Corp., said spending trends reflect a continuing economic upturn, particularly among households that have seen limited job and income losses.

“You still think overall, consumer spending is going to continue to grow, just maybe not as strongly as it otherwise would have if either the labor market were fully healed or there having been another round of financial assistance,” Moody told the Wall Street Journal.

Exxon Mobil’s losses reflect struggling oil, gas industry with COVID-19 pandemic

Exxon Mobil posted a $680 million loss last quarter and its revenue fell to $46.2 billion, down from $65.05 billion during the same quarter last year, according to the Associated Press.

Exxon’s losses mirror the rest of the oil and gas companies, which have struggled with weak prices from oversupply and the COVID-19 pandemic. The price of U.S. benchmark crude has fallen 40% since the start of the year. The cost of a barrel of oil tumbled 10% this week as coronavirus infections surged in the U.S., the article reported.

However, it’s not all bad news. Demand for refined products improved this quarter. Chemical sales volumes rose as demand for packaging increased, and automotive and construction markets recovered, the article reported. Oil demand is expected to fall 8% globally this year, the International Energy Agency said.

“We remain confident in our long-term strategy and the fundamentals of our business and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” Darren Woods, CEO of Exxon, said in a prepared statement. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”

The Sourcing Industry Group to host one-day procurement conference

The Sourcing Industry Group (SIG) is hosting one of its SIGnature Events on Thursday, Nov. 5.

Topics covered in the digital event include changes in procurement, sustainability, software auditing, contract lifecycle management, supply chains, negotiating from home and more. SIGnature Events are one-day meetings in which buy-side practitioners benchmark with other organizations and network with colleagues facing similar issues.

Attendees can learn more and register on the SIG website. 

Spend Matters' analysts look at solutions from BlueSnap and VNDLY

This week, Spend Matters PRO analysts assessed solutions from BlueSnap, a global B2B payments specialist, and VNDLY, which has a unified platform for sourcing, engaging and managing an organization’s non-employee workforce. Our PRO subscribers can read the full articles, but all readers can see the lengthy intros that frame the issues being discussed. This week:

Read more about a PRO membership.

Never miss out on Spend Matters news — sign up for our newsletter!

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.