The government reported this morning that consumer spending was unchanged in May, highlighting the slowdown in job growth and the uncertainty in consumer sentiment.
Personal income managed to rise 0.3% and the savings rate increased a tick to 5.0%.
Removing the impact of inflation, real consumer spending actually declined by 0.1%, the same as April.
Moving over to inflation, the PCE Price Index was up 0.2% last month, but the core rate, which excludes food and energy, rose by 0.3%, signaling that the steep jump in commodity prices is slowly beginning to leak into goods and services.
Summarizing the data-heavy, number’s-heavy report simply confirms what we’ve already known – growth has slowed but has not stalled.
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