US consumer spending rose unexpectedly while inflation remained unchanged from the months July to September according to the new figures released by the department of Commerce on Monday, which could further boost hopes for a rate hike by the Federal Reserve.
Based on the data published ahead of another meeting by top monetary officials, consumer spending, which comprised 70 per cent of US economic activity, erased the 0.1 per cent decline in August as it tiptoed 0.5 per cent last month, slightly higher than economists’ expectations of 0.4 per cent.
The personal consumption expenditures (PCE) price index, which measures the country’s inflation, registered the same increase gained in August at 0.2 per cent. On a year basis, the inflation rose 1.2 per cent, still below Fe’s target of 2%.
Both strong records in plus the spurt in soybean exports and a turnaround in inventory investment steered the economy to a 2.9 per cent growth in the third quarter.
The news did not bring positive results to major equity markets in New York as the blue chip Dow Jones industrial average futures lost 18.77 points, or 0.1 per cent, at 18 142.42 while the energy sector S&P 500 shed 0.26 points, or 0.01 per cent, at 2 126.15. NASDAQ composite slipped 0.97 points, or 0.02 per cent, to settle at 5 189.14.
Meanwhile, the US dollar index finished 0.04 per cent higher against its major counterparts and was last trading at 98.39.
Major equity markets across Europe stretched their subpar performance in six trading sessions as oil prices continued to slump.
Non-OPEC producers have yet to confirm any participation in production output freeze to stabilize prices.
The STOXX Europe 600 Oil and Gas index tumbles 0.9 per cent that sent STOXX 600 in the red zone, closing 0.4 per cent down and was on track for a two-consecutive month loss.European markets started the week on the back foot as UK’s FTSE futures finished down 0.54 per cent while the German DAX and France’s CAC 40 shed 0.11 and 0.70 per cent respectively.