WASHINGTON (AP) — Americans lifted their spending 0.4 percent in November from the previous month, a moderate gain that should sustain steady economic growth.
The Commerce Department says personal incomes rose 0.2 percent, down from 0.5 percent in the previous month.
Consumer spending jumped by the most in 13 months in October, and November’s solid gain on top of that points to healthy spending in the final three months of the year. Economists closely watch consumer spending because it accounts for about two-thirds of economic activity.
A measure of inflation slipped, rising 1.8 percent from a year ago, down from last month’s 2 percent annual gain.
That could add to recent pressure on the Federal Reserve to pause its interest rate hikes, since the Fed usually takes such steps to forestall rising inflation.
