U.S. personal spending rose in November, while PCE fell

U.S. consumer spending increased in November, highlighting the continued strength of the economy, prompting the Federal Reserve this week to predict a smaller rate cut in 2025 than expected three months ago. Data from the U.S. Department of Commerce showed that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4% month-on-month last month, while the increase in October was revised down to 0.3%. Economists surveyed by the agency predicted that consumer spending would increase 0.5% in October. Strong consumer spending pushed the U.S. economy to an annualized growth rate of 3.1% in the third quarter. Economists expect consumer spending to slow only slightly this quarter. The Atlanta Fed currently expects U.S. GDP to grow 3.2% in the fourth quarter. Federal Reserve Chairman Powell said on Wednesday that the U.S. economy has performed very well and I hope the economy will continue to perform well. (Jinshi)