The U.S. economy has entered an odd sort of limbo slowing, as it ends an unusually rough year, but with a possibly stronger recovery looming ahead. The latest economic readings, due out Wednesday, are expected to show that U.S. households cut spending in November, which would be the first drop since April, according to .
Provided by Dow Jones
By Josh Mitchell The U.S. economy has entered an odd sort of limbo slowing, as it ends an unusually rough year, but with a possibly stronger recovery looming ahead. The latest economic readings, due out Wednesday, are expected to show that U.S. households cut spending in November, which would be the first drop since April, according to economists surveyed by The Wall Street Journal. The Commerce Department report is also projected to show a drop in household income last month, as the effects of federal-aid programs earlier this year fade. A separate report by the Labor Department is expected to show another rise in weekly jobless claims, a proxy for layoffs.
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By Josh Mitchell Household spending dropped for the first time in seven months and layoffs remained elevated as a surge in virus cases weighed on economic recovery. After going on a shopping spree this summer, consumers closed their wallets last month, cutting spending by 0.4%, the Commerce Department said Wednesday. They cut spending on services such as restaurant meals, as well as purchases of goods, including big-ticket items like cars and appliances. Household incomes also took a hit as the effects of federal aid programs put in place earlier this year fade. Household income measuring what Americans received in wages, investment returns and government aid fell 1.1%, the third drop in four months.