Inflation Measures and Consumer Behavior
In November 2023, key economic indicators showed mixed signals in the U.S. economy. The personal consumption expenditures (PCE) price index, a critical inflation measure used by the Federal Reserve, witnessed a modest increase of 0.1% for the month. This increment aligns with the central bank’s inflation target, indicating a gradual move towards economic stability.
Income and Expenditure Patterns
Personal income in the U.S. rose significantly by 0.4%, or $81.6 billion, reflecting a robust economic momentum. Disposable personal income (DPI) mirrored this growth, increasing by the same margin. Despite inflationary pressures, personal consumption expenditures (PCE) also grew, albeit at a slower rate of 0.2%, signifying continued consumer spending resilience.