US consumer spending rose in October, inflation subdued


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US consumer spending rose in October, inflation subdued

On Wednesday, the 27th of November, data released by US Commerce Department had added a cheery look to US economy, as US Consumer Spending accountable for roughly two-third of economic activities in the country posted a stable growth on October, suggesting a sweetening outlook for US economy, manufacturing industry of which had still been facing off a technical recession.

Nonetheless, followed by Wednesday’s (November 27th) robust US Commerce Department data, several analysts were quoted saying that the US economy, witnessing its longest streak of gains on record entering into 124th straight months in a row, heavily dependent on consumer spending to avert a looming recession, might just be able to wipe away possibilities of further moderation and could sustain its growth momentum during the fourth quarter of the year.

Besides, according to US Commerce Department report revealed on Wednesday (November 27th) during US morning trading hours, US Consumer Spending rose by 0.3 per cent on October after posting a growth of 0.2 per cent on September on an adjusted basis, as a rise in household expenses including electricity and gas had offset impacts of a drop in new motor vehicle purchase, while the US economy grew at a rate of 2.1 per cent during Q3, 2019, much-lower than a target of 3.0 per cent that US President Donald Trump and his administration had pledged, but sufficient to avert a slowdown in Q4, 2019, suggested analysts.