Economics
U.S. Consumer Spending, Jobless Claims Suggest Some Caution
- Fed’s preferred inflation gauge matches slowest since 2016
- Income gains match projections for September increase
This article is for subscribers only.
U.S. consumer spending trailed forecasts in September while weekly applications for unemployment benefits rose more than projected, offering a note of caution on the economy as Federal Reserve policy makers signal a pause from interest-rate cuts.
Consumer outlays for goods and services, which account for about 70% of gross domestic product, increased 0.2% from the prior month after a 0.2% August advance that was larger than previously estimated, Commerce Department data showed Thursday. The report also showed income gains matched projections, while the Fed’s preferred inflation gauge matched the slowest pace since 2016.