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U.S. consumer spending solid in October; weekly jobless claims fall

01 December 2022 19:21 (UTC +04:00)

U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it navigates a high interest rate environment, APA reports citing Reuters.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8% after an unrevised 0.6% increase in September, the Commerce Department said on Thursday. October's gain was in line with economists' expectations.

Spending last month was boosted by wage gains amid labor market resilience, one-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, and cost of living adjustments for food stamp recipients.

The Federal Reserve is in the midst of what has become the fastest rate-hiking cycle since the 1980s, as it battles high inflation, raising the risks of a recession next year. Fed Chair Jerome Powell said on Wednesday the U.S. central bank could scale back the pace of its rate increases "as soon as December."