U.S. consumer spending powers ahead in October; inflation cooling

[groundloop]

Source: Reuters

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 faces rising headwinds from the Federal Reserve's aggressive monetary policy tightening.

The labor market, the economy's other pillar of support, continues to show resilience. The number of Americans filing new claims for unemployment benefits declined last week, almost unwinding the prior week's jump, which had lifted claims to a three-month high, other data showed on Thursday.

The outlook was, however, darkened by news that manufacturing activity contracted in November for the first time in 2-1/2 years, with factories reporting weakening demand. Still, economists remain cautiously optimistic that an anticipated recession next year would be short and mild.

"The consumer is alive and well," said Christopher Rupkey, chief economist at FWDBONDS in New York. "Right now, even if consumers do not buy anything more in November and December, real consumer spending is running well above normal and in no way, shape or form looks like a recession."



Read more: https://www.reuters.com/markets/us/us-consumer-spending-solid-october-weekly-jobless-claims-fall-2022-12-01/

[Fla Dem]

1. "The consumer is alive and well,"

Every store I went into this week; Target, Belks, Michael's was crowded with people. The shelves of Christmas related merchandise were almost and, in many cases, totally empty. There were long lines to check out with customers with full baskets.

Whether I am going to a local small or a large chain restaurant, they are full with a wait time.

People are traveling with full flights and booked hotels.

I go online to order something and there is a mention that they are already sold out or only have 2 items left.

Every store, whether it's high end, mid-priced, specialty or small mom & pop store has help wanted signs, as do the restaurants, gas stations, hotels and motels.

Even my dental office and doctor's office are looking for help.

Some of this may be unique to my area (NE FLA) but there is a lot that is nationwide.

Grocery prices are still very inflated and has to be taking a toll on families. Not sure what the problem is whether it's a supply chain issue, overpriced products from the supplier, or over pricing at the merchant level, both trying to milk as much as they can from this whole economic uncertainty.

[durablend]

3. Grocery prices I believe to be the last one

They're sticking it to the consumer as much as they're able to.

[BComplex]

2. We sure aren't hearing on the republican-owned mainstream media how the republicans

with money and control in industry ramped up gas prices and profit-taking to a degree seldom seen on this planet while the election was going on.

DAMN THEM ALL TO HELL.