Reports indicate ‘healthy’ economy
Manufacturing rebounds as consumer spending, housing market cool
Washington ? America’s consumers came off a buying binge and were somewhat less jolly spenders in November. New-home sales, meanwhile, cooled from a record high, while demand for big-ticket manufactured goods rebounded.
The latest batch of economic reports released Thursday, though sending slightly mixed signals, still painted a picture of a modestly growing economy, analysts said.
“Tie a bow around it — I’ll take it home,” said Ken Mayland, president of ClearView Economics. “All the reports are indicative of a healthy economy.”
Analysts said they still were expecting respectable economic growth in the current October-to-December quarter, with estimates ranging from a 3.5 percent pace to topping a 4 percent pace.
Thursday’s reports “are telling us this is still a gradual economic expansion that is not bursting at the seams,” said Anthony Chan, senior economist at JPMorgan Fleming Asset Management.
A Commerce Department report showed that consumers boosted spending by a modest 0.2 percent in November, compared with a brisk 0.8 percent rise in October — the biggest since July.
Incomes grew by 0.3 percent in November, down from a 0.6 percent rise the month before.
Although consumers are still in good shape, high energy prices and a still-recovering jobs market are making some, notably low- and middle-income Americans, more cautious spenders, analysts said. Consumer spending accounts for roughly two-thirds of all economic activity and is closely watched by economists.