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Markets are betting new data from the Personal Consumption Expenditures Index, one of the most closely-watched gauges of inflation, will put the Fed on pace to cut rates in 2024. Illustration: John RucoskyAmericans slowed their spending in October and inflation continued cooling as the economy downshifted into fall after a fast-paced summer. Consumer spending rose 0.2% in October, down sharply from a 0.7% rise in September, the Commerce Department said Thursday. The October reading marked the slowest increase since May. The combination of ebbing income growth, high interest rates and prices, dwindling pandemic savings and the resumption of student-loan payments is eroding Americans’ ability to keep boosting their spending as briskly as they did through the summer, economists say.
Persons: Dion Rabouin, John Rucosky Organizations: Commerce Department
Consumers Pulled Back on Spending in October
  + stars: | 2023-11-30 | by ( Gwynn Guilford | Nick Timiraos | ) www.wsj.com   time to read: 1 min
Consumers saw inflation cool in October after gasoline prices fell and underlying price pressures eased. The report suggests the Fed is likely done raising interest rates. Photo: Brandon Bell/Getty ImagesAmericans slowed their spending in October and inflation continued cooling as the economy downshifted from a fast-paced third quarter. Consumer spending rose 0.2% in October, down sharply from a 0.7% rise in September, the Commerce Department said Thursday. The combination of ebbing income growth, high interest rates and prices, dwindling pandemic savings and the resumption of student loan payments are eroding Americans’ ability to keep boosting their spending as briskly as they did through the summer, economists say.
Persons: Brandon Bell Organizations: Getty, Commerce Department
Consumers Likely Pulled Back Spending in October
  + stars: | 2023-11-30 | by ( Gwynn Guilford | ) www.wsj.com   time to read: +1 min
Dwindling pandemic savings and student loan payments resuming are some of the factors eroding Americans’ ability to keep spending. Photo: Rachel Wisniewski for The Wall Street JournalAmericans slowed their spending in October and inflation ebbed as the economy downshifted from a fast-paced third quarter, forecasters say. Economists surveyed by The Wall Street Journal estimate consumer spending rose 0.2% in October, down from a 0.7% rise in September and the slowest increase since May. Core prices rose 0.2% in October from the prior month, down from the 0.3% monthly gain in September, they said. Core prices rose at a 2.8% annualized rate in April through September, down from a 4.5% annualized rate in the prior six-month period.
Persons: Rachel Wisniewski Organizations: Wall Street Journal, Wall, Federal
Healthcare providers accounted for 30% of U.S. job gains in the six months through October. Photo: Lauren Petracca for The Wall Street JournalA healthcare hiring boom is helping offset weaker job growth in other areas of the softening U.S. economy, boosting its chances of skirting a recession. The industry could serve as a strong job generator for years to come as an aging population and Covid-19 fuel widespread worker shortages and greater needs for healthcare services.
Persons: Lauren Petracca Organizations: Wall
Compensation increases vary depending on where one lives and the industry in which one works. Gains at restaurants, bars and retailers, for example, have slowed after peaking in early 2022. Photo: Al Drago/Bloomberg NewsAmerican workers are still commanding beefy pay raises. That is good news for workers but something that could complicate the Federal Reserve’s inflation fight. Fed officials are likely to hold interest rates steady at this week’s policy meeting Tuesday and Wednesday, but signs of stalled progress in slowing wage and price increases could open the door to another rate increase in the coming months.
Persons: Al Drago Organizations: Bloomberg News
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressAmerican workers are still commanding big pay raises, though not quite as beefy as last year. That is good news for workers but a potential complication for the Federal Reserve’s fight to lower inflation. Employers spent 1.1% more on wages and benefits in July through September than in the prior three months, according to the Labor Department’s employment-cost index, released Tuesday. That was slightly better than the 1% gain in the second quarter and a sign that wage pressures remained strong as economic growth accelerated.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press American, Federal, Employers, Labor
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressU.S. economic growth surged this summer at the fastest pace since 2021, as consumers spent at a blockbuster rate that will be difficult to sustain. Gross domestic product expanded at a 4.9% seasonally- and inflation-adjusted annual rate in the third quarter—more than double the second quarter pace—the Commerce Department reported Thursday. The acceleration won’t change the Federal Reserve’s plans to hold rates steady at their meeting next week.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press U.S, Gross, Commerce Department
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Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-september-economy-unemployment-d9409b8b
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-september-economy-unemployment-d9409b8b
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-september-economy-unemployment-d9409b8b
Persons: Dow Jones
U.S. Incomes Fall for Third Straight Year
  + stars: | 2023-09-12 | by ( Gwynn Guilford | Paul Overberg | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/u-s-incomes-fall-for-third-straight-year-7b8293c6
Persons: Dow Jones, 7b8293c6
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-august-today-unemployment-economy-de847415
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-august-today-unemployment-economy-de847415
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/jobs/jobs-report-august-today-unemployment-economy-de847415
Persons: Dow Jones
Will ParkerWill Parker writes about the housing and residential rental market for The Wall Street Journal. He was previously a reporter and special projects editor at the Real Deal, where he focused on the intersection of New York City real estate and politics.
Persons: Will Parker Will Parker Organizations: Wall Street, Real, New York Locations: New, New York City
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/after-pulling-inflation-down-gasoline-and-food-threaten-to-nudge-it-up-51cba41f
Persons: Dow Jones
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Persons: Dow Jones
CPI Report Shows Inflation Eased to 3% in June
  + stars: | 2023-07-12 | by ( Gwynn Guilford | ) www.wsj.com   time to read: 1 min
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Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/consumer-price-index-report-june-inflation-ede7f4b1
Persons: Dow Jones
Americans Have Quit Quitting Their Jobs
  + stars: | 2023-07-06 | by ( Austen Hufford | Gwynn Guilford | ) www.wsj.com   time to read: 1 min
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Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/labor-market-headfake-key-report-could-be-overestimating-job-growth-c7ea020
Persons: Dow Jones
Lots of Hiring, but Not So Much Working
  + stars: | 2023-06-18 | by ( Gwynn Guilford | Austen Hufford | ) www.wsj.com   time to read: 1 min
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Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/consumer-price-index-report-may-inflation-cafcbef5
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/consumer-price-index-report-may-inflation-cafcbef5
Persons: Dow Jones
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