Truflation: US Inflation Update November 2023

Consumer spending remains strong in a tight labor market 

Recent data releases suggest the US economy remains resilient. On November 29, the second estimate for Q3 GDP saw an upward revision from 4.9% to 5.2%, driven by the increase in consumer spending and inventory investments.  

Consumers continued to spend in October, though not as strongly as they did in September. Retail sales dropped marginally by 0.1% month-over-month (MoM), though remained positive over the year at 2.5% year-over-year (YoY).  The strong annual growth trend has been consistent over the past few months and does not take into account the impact of inflation. 

Graph 1: Monthly Retail Sales and Inventories - Adjusted 

Source: US Census Department; Advance Monthly Retail Trade Survey

The marginal monthly drop in retail sales reflects the continued declines in the motor vehicles and parts dealers category, ... READ THE ENTIRE 20 PAGE REPORT BY CLICKING HERE.