On Thursday, the 31st of October, a report from US Commerce department on US consumer spending released on GMT 12.30 had revealed a perilous portrait of the US economy, while a likely last lifeline for a slowing US economy that could have prevented it from entering into a looming recession, US consumer spending, rose slightly last month, while wage growth remained unchanged, casting doubts among investors’ over consumers’ ability to keep thriving US economy in the wake of a withering slump in business spending alongside a decade-low figure of a recessed US manufacturing sector.
Aside from that, according to the US Commerce Department’s Thursday’s (October 31st) data, US Consumer spending rose marginally to 0.2 per cent which was almost in line with an analysts’ estimates, while US core personal consumption was reduced to 1.7 per cent from an earlier 1.8 per cent last month on a year-on-year basis, adding further strains on to a sharply slowing US economy.
Besides, fuelling up the frets of a looming recession on US economy, personal earning was contracted to 0.3 per cent last month from a figure of 0.5 per cent in August. Meanwhile, casting further clouds over US economy’s ability to continue its decade-long economic expansion, a chief US economist at Oxford Economics in New York, Gregory Daco said following release of a raft of downbeat US Commerce Department data on Thursday (October 31st), “With wage growth no longer accelerating, and employment growth cooling, growth in consumer spending is expected to moderate as we enter 2020. ”