Data Likely to Show More Economic Growth

U.S. consumer spending figures for November to be issued this week could be strong enough to give the Federal Reserve reason to boost interest rates next year, analysts said. Robust growth in domestic demand coupled with the dwindling pool of workers would be signs of continued economic growth that has the potential to spur inflation, which the Fed is constantly trying to quell. Policymakers on the Federal Open Market Committee will meet once before the new year, on Tuesday. But most analysts expect them to take a pass at that meeting, leaving the key overnight bank loan rate at 5.5%, where they set it Nov. 16. The central bankers might, however, announce they’re leaning toward raising rates in the future, analysts said. The first two FOMC meetings next year come Feb. 2 and March 21.

In any case, the Commerce Department will release November consumer spending figures Thursday. The numbers will probably show that personal spending rose 0.5% in November after a 0.6% gain in October. Personal income probably rose 0.3% last month after rising 1.3% the previous month. The income figures will be released Thursday along with the personal spending numbers. Meanwhile, the Commerce Department will release figures for November durable-goods orders Thursday, probably showing a rise of 1.0% during the month after falling 1.2% in October.

In other reports due out this week:

* The government will release Wednesday its final revision of third-quarter growth. It probably will show that the economy continued on its 5.5% annual growth pace, the same as the previous estimate and still the largest gain since the fourth quarter of last year. The GDP price deflator, a measure of price increases followed by many investors, probably grew at a 1.1% rate.

* Also on Thursday, the Fed will release minutes of the Nov. 16 FOMC meeting, when the panel raised the overnight bank loan rate a quarter percentage point to the current 5.5%. It was the third increase in the rate this year.