Despite slowing in other parts of the economy, a 0.4% consumer spending increase in November on top of big upward revisions to prior data means the consumer is on track to be a major driver of Q4 GDP growth, explained analysts at Wells Fargo.
Key Quotes:
“After having posted the largest monthly increase of the year in October, personal income increased again in November, climbing 0.2% from the month prior, a little softer than the 0.3% that was expected. Most income categories were positive including wages and salaries which accounted for more than a third of the overall increase.”
“Amid an otherwise sturdy backdrop for consumer spending, durable goods outlay have been only measured as a higher interest rate environment raises the cost of lending that often facilitates durable goods spending. Today’s report showed some newfound strength here with a 0.9% increase in November consumer durables spending.”
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