Consumer spending has not increased much at the start of the holiday shopping season | Jobs Reply


Numbers: Consumer spending rose a tepid 0.1% in November, suggesting greater vigilance by families and heavy discounting during the holiday shopping season.

Analysts polled by the Wall Street Journal had forecast a 0.2% increase.

Incomes rose 0.4% last month, the government said on Friday, faster than the rate of inflation.

Main image: Consumer spending is the main engine of the economy, but it may start to falter given rising interest rates. The Federal Reserve has raised rates to try to reduce inflation.

What may continue to be wasted time is a tight job market. If layoffs increase and unemployment rises, however, the economy will inevitably suffer.

High borrowing costs depress the economy by making it more expensive to buy a home or car or to borrow money.

Market reaction: Dow Jones Industrial Average DJIA,
-1.05%
and the S&P 500 SPX,
-1.45%
were scheduled to open higher in Friday’s trading.



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