Washington (awp / afp) – Consumption in the United States was driven by services in November, however recording a slower increase than in October and still finding itself penalized by inflation which continued to climb on a slowdown over a month.
Household spending rose 0.6%, as expected, from 1.4% in October, according to Commerce Department data released Thursday. Spending climbed in October as consumers took a little lead on their year-end purchases for fear of shortages.
“Consumers spent less enthusiastically in November as they moved their holiday shopping earlier in the season and continued to face escalating prices and reduced product availability,” Lydia commented. Boussour, economist for Oxford Economics.
Their incomes increased by 0.4%, against 0.5% last month, but, taking inflation into account, Americans saw their incomes fall (-0.2%) for the fourth month. in a row.
Inflation remains very high indeed. It has, of course, slowed down over one month, to 0.6% against 0.7% in October, according to the PCE index, also published Thursday. Compared with November 2020, on the other hand, it continues to accelerate to stand at 5.7%, the largest increase in prices since 1982, against 5.1% year-on-year in October.
This inflation is mainly driven by energy, the prices of which are up 34% over one year. Excluding energy and food prices, so-called core inflation is 0.5% over one month, stable compared to October, but accelerating over one year, to 4.7% against 4.2% last month.
The PCE inflation index is the one used by the US central bank. Another measure, the CPI, calculated 6.8% inflation in November over one year, a high since 1982 as well.
President Joe Biden highlighted on Wednesday the progress made in easing logistical problems, including congestion at ports, which he said has helped prevent a supply crisis during the holiday season: “the goods are transported, the gifts are delivered and the shelves are not empty, ”he said.
Truck drivers, on the other hand, are still in short supply.
As for inflation, it is now one of the administration’s main concerns.
The US central bank has revised its forecast upwards, and expects PCE inflation to be higher than expected in 2021 and 2022, at 5.3% and 2.6% respectively.
In an attempt to contain it, it will speed up the pace of reduction in its asset purchases, which supported the economy during the crisis, in order to then be able to raise its key rates, which will have the effect of slowing demand. , and therefore the price increase.
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