November’s personal income and spending were in line with economist expectations, rising 0.4% and 0.6% respectively, though spending slowed considerably from October’s 1.3% increase. Amid earlier holiday shopping boosting October’s figures and higher prices, consumers slowed down their purchases of goods and services. Essentials (housing, utilities, gas, and food) and services increased, while inflation adjusted spending on goods declined for the first time since July.
The labor market remains tight with initial jobless claims holding near their historic lows, with 205K initial claims report in the latest week and putting the four week average holding fairly steady at 206K.
Third quarter GDP was revised slightly upward to a 2.3% annualized growth rate, up from 2.1% previously.
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