10/17/2021

U.S. consumer spending slows; business investment perking up

U.S. consumer spending increased modestly in November as household income failed to rise for the first time in nine months, suggesting the economy slowed in the fourth quarter after growing briskly in the prior period.

The economy, however, remains on solid footing as other data on Thursday showed new orders for capital goods rising last month amid demand for machinery, indicating that some of the oil-related drag on business spending was fading.

And while the number of Americans applying for unemployment aid hit a six-month high last week, it remained below a level that is associated with labor market strength. The slowdown in growth is likely to be temporary given the strong economic foundation that could be bolstered by President-elect Donald Trump’s plan to slash taxes and boost infrastructure spending.

View Article