September 26, 2023
Consumer spending growth has slowed in the USA

Consumer spending growth has slowed in the USA

Yesterday was Christmas. Naturally, consumer spending has increased in countries like the United States. But inflation has come down in that country. Inflation last month was the lowest in 13 months. However, inflation is not falling as fast as the Federal Reserve’s target.

Reuters reports that the US central bank is trying to ease demand in everything from housing to labor. Tightening monetary policy to bring inflation down to the 2 percent target is still a long way off. “From the Fed’s perspective, the economy is moving in the right direction, but at a much slower pace,” said Gus Faucher, an economist at PNC Financial, a U.S.-based financial services firm.

According to the Census Bureau, more than two-thirds of US economic activity comes from consumer spending. The country’s consumer spending rose just 1.1 percent in November, though economists in a Reuters poll had forecast a 10.2 percent rise.

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