In July, American consumer expenditures increased at their fastest pace in four months, supported by rising wages that helped sustain demand even as inflation remained elevated.
Although household spending continues to demonstrate resilience, signs point to a potential slowdown ahead. Labor market expansion has begun to moderate, and persistent price increases could dampen future consumption. The core Personal Consumption Expenditures (PCE) index, closely monitored by the Federal Reserve, rose to 2.9% year-on-year—the highest level since February.
— news from Bloomberg.com
— News Original —
Charting the Global Economy: US Consumers Remain Resilient
US consumer spending rose in July by the most in four months as stronger income growth bolstered demand in the face of high prices. n nWhile Americans continue to spend, the momentum is at risk of ebbing as job growth slows and prices keep climbing. The Federal Reserve’s preferred gauge of core inflation picked up to 2.9% on a year-over-year basis, the most since February.