US Consumer Spending

Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.5 per cent last month after an upwardly revised 0.4 per cent gain in June

The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter

The average American citizen is as unprepared for being cut off from world markets as US institutions are for the assault of a populist strongman

Consultancy firm Anderson Economic Group said in a report on Thursday that 25 per cent tariff on auto imports may cost American consumers more than $30 billion in higher vehicle prices and reduced car

Economists polled by Reuters had forecast consumer spending rising 0.5 per cent after a previously reported 0.2 per cent fall in January

The belt-tightening indicates that Americans, whose finances are broadly healthy, are preparing for their finances to be more stretched, said Max Axler, chief credit officer of Synchrony

Consumer inflation expectations have been rising for the last month or two across several reports. Some surveys point to businesses anticipating higher prices as well

It followed on the heels of surveys last week showing steep declines in business and consumer sentiment in February

The increase was in line with economists' expectations. In the 12 months through December, the PCE price index advanced 2.6%. That was the biggest gain in seven months

Inflation and higher interest rates are forcing households to prioritise essentials and cut back on discretionary spending

The personal consumption expenditures (PCE) price index rose 0.3% last month, the Commerce Department's Bureau of Economic Analysis said

Fears that the economy could slide into recession in early 2024 could see households reluctant to spend and instead build their savings

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, gained 0.4% last month, the Commerce Department reported on Friday

The finding is at odds with the optimism that's permeated US equity markets for most of the summer, as cooling inflation and low unemployment bolstered hopes for a so-called soft landing

The PCE price index increased 0.4% in April after rising 0.1% in March. In the 12 months through April, the PCE price index increased 4.4% after advancing 4.2% in March

The economy expanded at a 2.6% rate in the fourth quarter

The data was included in the advance fourth quarter gross domestic product report, which showed consumer spending maintaining a solid pace of growth

The personal savings rate, as a percentage of disposable income, fell to 4.4 per cent in April, the lowest level since 2008 in the US, according to the Commerce Department

The rebound in spending could further temper expectations for a sharp slowdown in economic growth in the first quarter

With every trip to the grocery store and gas pump eating away a little more of their paychecks, people have less left over for discretionary purchases