United States: Inflation takes another leg lower

Summary

United States: Inflation takes another leg lower

• The U.S. data this week signaled that the economic expansion remains intact even as inflation continues to slow. The year-ago rates of headline and core PCE inflation were the lowest since March 2021 and April 2021, respectively.
• Next week: ISM Services (Tue.), Employment (Fri.), Consumer Sentiment (Fri.)

International: Mixed news on the international economic front

• Eurozone inflation slowed more than expected in November, and Canada's Q3 GDP unexpectedly declined, while the Reserve Bank of New Zealand held interest rates steady but offered hawkish policy guidance. China's manufacturing and services PMIs both slipped in November, while India's Q3 GDP advanced at a solid pace.
• Next week: Australia Policy Rate (Tue.), Mexico CPI (Thu.), India Policy Rate (Fri.)

Credit market insights: Credit check: Is it time to worry about credit card debt?

• After paying off credit card debt during the COVID lockdown period, households have levered up at a pace seven times as fast as they did in the prior cycle. Credit card delinquencies are starting to tick higher as well amid the highest average annual percentage rate on credit card debt in data going back to the early 1980s. So, is it time to start worrying about credit card debt?

Topic of the week: Something in the beige tells me we're almost done

• The blistering pace of growth in the third quarter is on track to cool in the final months of the year. That is the takeaway from contacts across the 12 Federal Reserve Districts who noted slowing economic activity since early October in the final Beige Book of this year.

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