The numbers: Consumer spending rose a tepid 0.1% in November, suggesting greater caution by households and heavy discounting in the holiday shopping season.
Analysts polled by The Wall Street Journal had forecast a 0.2% increase.
Incomes climbed 0.4% last month, the government said Friday, a bit faster than the rate of inflation.
Big picture: Consumer spending is the main engine of the economy, but it might be starting to sputter in the face of rising interest rates. The Federal Reserve has jacked up rates to try to tame inflation.
What’s likely to keep spending going up for the time being is a strong jobs market. If layoffs increase and unemployment rises, however, the economy is bound to suffer.
Higher borrowing costs depress the economy by making it more expensive to buy a home or car or take out a loan.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open higher in Friday trades.
