Recession warnings are looking flat wrong as consumers power the economy forward

For all the sense of angst about the U.S. economy of late, the American consumer continues powering growth forward. • New data out this morning confirms that trajectory continued through late summer.

Why it matters: All those recession warnings from earlier in the year are looking flat wrong. When consumers keep spending (which they are) and businesses keep investing (which they also are), the economy can't — almost as a matter of arithmetic — fall into a contraction.

Driving the news: Personal consumption expenditures rose 0.6% in August, the Commerce Department said this morning, or 0.4% adjusted for inflation. • The spending bump was particularly strong for physical items, with a 0.8% rise in both durable and nondurable goods. • Personal income rose as well, though only by 0.4%,