The US Economy Is Still Growing, But Slower Than Before

The US economy added a solid 250,000 jobs in October, but the pace of growth is slowing amid an inflation fight. Consumer prices are rising at a pace not seen since the early 1980s. Inflation, which measures how the cost of living changes over time, is up 8.2% over the 12 months to September.

The issue has weighed on Democrats, who were already fighting an uphill battle to maintain their slim hold of Congress.

Despite the strong labour market, soaring costs have hit public confidence. The jobless rate ticked up to 3.7% in October from 3.5% in September as people entered the job market and looked for work.

The US economy has been adding jobs for 97 straight months, but the pace of growth has slowed in recent months as the pool of available workers shrinks. Wage growth also remains sluggish, despite the tight labour market.

Consumer prices are rising at a pace not seen since the early 1980s, and inflation is up 8.2% over the 12 months to September. This issue has weighed on Democrats, who were already fighting an uphill battle to maintain their slim hold of Congress. Looking ahead, job losses are expected to increase next year as businesses begin to feel the effects of the soaring costs. This could further dampen consumer spending and drag on economic growth.