September 27, 2024 – 7:31 AM PDT
WASHINGTON (Reuters) – U.S. consumer spending increased slightly less than expected in August, suggesting some moderation in economic growth in the third quarter, while the annual rise in prices was the smallest in just over 3-1/2 years.
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A solid pace of economic growth this quarter, however, remains in the cards as other data from the Commerce Department on Friday showed the goods trade deficit narrowed by the most in nearly two years last month.
Economists did not see the spending and inflation data as weak enough to compel the Federal Reserve to deliver another 50 basis points interest rate cut in November as hoped by investors.
“All things considered, this month’s report does not nudge the Fed in the direction of another forceful 50 basis points cut in November,” said Olu Sonola, head of…
