U.S. Consumer Spending Up but Inflation Down in November - Action Forex

Two months into the final quarter of the year and the U.S. consumer continues to show incredible resilience. Despite sustained headwinds, a rise in income growth has helped to provide a boost to consumer's spending power. The holiday season in particular may have given consumers an extra impetus to spend, thereby contributing thus far to decent spending growth. The lift, however, is likely to fade heading into the New Year. All told, we anticipate that real consumption expenditure for Q4 will clock in at around 2.3% (q/q annualized) –  a step-down from the stellar 3.1% growth posted in Q3 and marginally above our most recent forecast (see forecast).