Personal expenses in the US at the maximum
2022.12.01 09:47
Personal expenses in the US at the maximum
Budrigannews.com – In October, household spending in the US remained high, it jumped by 0.8 compared to September and by 0.6, which are the preferred inflation indicators used by the Fed.
Since the peak reached in June, inflation, expressed by the PCE price index, has decreased over the past three months, and the growth of 0.3 in October was below analysts’ forecasts of 0.5 growth.
After excluding unstable batteries and energy carriers, the price index also grew less than expected, increasing only by 0.2% for the month, which led to a decrease in up to 5.2% from 5.2% in September.
These figures completed another series of months when spending was not in line with expectations and gave rise to hope that the Fed would be able to reduce inflation without recessions.
Last week, the number of people who filed initial applications for unemployment benefits decreased, which became another indicator of economic strength. Last week it amounted to 241 thousand people to 225 thousand people.
However, the approximate hiring trend increased to 1,608 million people, which is the highest level in 9 months, and turned out to be higher than expected. In his note to clients, Ryan Sweet, head of economist at the Oxford Economic Institute for the United States, said that the initial numbers of appeals were “noisy rather than signal” because they are distorted by the festive holiday of gratitude.
However, although a slight increase to 228750 to 227,000, fewer volatile initial applications are still indicative of a tight labor market. Sweet believes that “a 50 basis point increase in December seems to be the right decision.”
“The tight labor market gives the Fed the opportunity to continue increasing the target range of the federal funds rate,” said Sweet. In some reports and surveys, there is an increase in the number of dismissals, but the growth of applications over the past few weeks has been much more restrained.
According to the results of the October survey, aggressive growth in spending on the technology industry in particular led to an increase in layoffs to the highest level in the last 2 years.
As a rule, technical dismissals affect those who were more educated, who had no difficulties in finding new vacancies, when every unemployed person has more than 1.7 open jobs.
