Consumer Check - "F*ck your inflation" - every consumer in America last month.
That's what the story seems to be because despite inflation levels that have FinTwit on a nonstop panic attack, consumers are spending like hell. October saw a 1.3% boost in spending from consumers, who also happen to drive close to 70% of the economy. That's more than double the growth that September saw with a 0.6% increase from the previous month, suggesting strong demand to holiday presents is buoying the nation's economy.
The most unsurprising part, obviously, was that economists were once again wrong with their forecast. Expectations of 1% got sh*t on by over 30%. Meanwhile, core inflation numbers emerged, known as the personal consumption expenditure (PCE). No surprise here, but the price level of core consumption goods increased in October by about double the increase seen in September, meaning October saw a 0.4% boost in core inflation.
Honestly, PCE is kinda like the worst metric ever. It's super weird - very similar to the CPI, the PCE measure price jumps of "core" expenditures. Basically, PCE excludes food and energy. This is done to reduce volatility in this measurement, as these factors tend to jump around even more than House of Pain, but food and energy are also like *the* single most "core" expense consumers have.
Weird. But either way, consumers don't seem to rattled by the rise in price levels. Keep in mind that Americans are, across the board are wealthier than ever in terms of net worth. With the holiday season incoming, declines in spending for the rest of the year seem unlikely.