The Commerce Department announced on Thursday that consumer spending in
the U.S. rose 0.2 per cent m-o-m in November after an unrevised 0.2 per cent m-o-m increase in October. This represented the 8th straight monthly advance
in consumer spending. Economists had predicted a gain of 0.3 per cent
m-o-m for October.
Meanwhile, consumer income climbed 0.4 per cent m-o-m in November,
following an upwardly revised 0.3 per cent m-o-m advance (from +0.2 per cent
m-o-m) in the previous month. This marked the 22nd straight monthly increase in
consumer income, the pace of which was also the strongest in three months. Economists had foreseen a 0.4 per cent m-o-m jump.
The November growth in personal income was mainly due to increases in
compensation and personal income receipts on assets, which, however, were
partly offset by a decline in personal current transfer receipts, the Commerce Department noted.
Elsewhere, the personal consumption expenditures (PCE) price index,
excluding the volatile categories of food and energy, which is the Federal
Reserve's preferred inflation gauge, edged up 0.1 per cent m-o-m in November, following a downwardly revised 0.1 per cent m-o-m uptick (from +0.2 per cent
m-o-m) in October.
In the 12 months through November, the core PCE price index soared 3.2
per cent, cooling from a downwardly revised 3.4 per cent (from 3.5 per cent) in the 12
months through October. This was the lowest reading
since March 2021 (+2.3 per cent). Economists had forecast a surge of 3.3 per
cent y-o-y.