Solid growth: Shoppers at a Target store ahead of Black Friday in Clifton, New Jersey. Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.4% last month after an upwardly revised 0.6% advance in September. — Bloomberg
WASHINGTON: US consumer spending increased slightly more than expected in October, suggesting the economy retained much of its solid growth momentum early in the fourth quarter (4Q), but progress on lowering inflation appears to have stalled in recent months.
The lack of success in bringing inflation back to the Federal Reserve’s (Fed) 2% target, together with the prospect of higher tariffs on imported goods from the incoming Trump administration, could narrow the scope for interest-rate cuts from the US central bank next year.
