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U.S. consumer spending falls; inflation cooling

WASHINGTON- U.S. consumer spending fell in December, putting the economy on a lower growth path heading into 2023, while inflation continued to subside, which could give the Federal Reserve room to further slow the pace of its interest rate hikes next week.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, dropped 0.2 per cent last month, the Commerce Department said on Friday. Data for November was revised lower to show spending slipping 0.1 per cent instead gaining 0.1 per cent as previously reported. Economists polled by Reuters had forecast consumer spending dipping 0.1 per cent.

The data was included in the advance fourthquarter gross domestic product report published on Thursday, which showed consumer spending maintaining a solid pace of growth and helping the economy to expand at a 2.9 per cent annualized rate.

BUSINESS

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2023-01-28T08:00:00.0000000Z

2023-01-28T08:00:00.0000000Z

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