Consumer spending increases 0.4 in November
Autos, recreation and financial services lift spending
Personal income rises 0.3; saving rate dips to 4.4
Core PCE inflation rises 0.1, smallest gain in six months

WASHINGTON, Reuters U.S. consumer spending increased in November amid strong demand for a range of goods and services, underscoring the economy39;s resilience, which saw the Federal Reserve this week projecting fewer interest rate cuts in 2025 than it had in September.

There was also good news on inflation last month after a series of warmer readings. The report from the Commerce Department on Friday showed moderate monthly rises in prices, with a measure of underlying inflation posting its smallest gain in six months. Nonetheless, the annual increase in core inflation, excluding food and energy, remained stubbornly well above the U.S. central bank39;s 2 target.

There are also worries that plans by Presidentelect Donald Trump39;s incoming administration to cut taxes, impose or raise tariffs on imports and deport millions of undocumented immigrants would stoke inflation.

The economy continues to grow from strong consumer demand as income growth and the wealth effect from higher portfolio values give consumers capacity to spend, said Jeffrey Roach, chief economist at LPL Financial. Inflation was more benign than expected but the stickiness of some categories supports the Fed39;s hesitancy to materially lower rates next year.

Consumer spending, which accounts…