Broad Gains In US Consumer Spending
According to the Commerce Department, consumer spending in the US has broadly improved on higher spending on restaurants and accommodation, rising 0.4% in June. Spending on goods remained unchanged. Spending on services grew 0.6%.
May’s figures were raised to from 0.2% to 0.5%. In an annualized rate, consumer spending increased 4.0%. The data marked a strong entrance into the third quarter. Adjusted for inflation, consumer spending was up 0.3% in June.
The PCE (personal consumption expenditures) price index, without food and energy components rose 0.1% after lifting 0.2% in May. In year-on-year terms, the PCE price index grew at 1.9% for almost the whole quarter. The core PCE reached the Fed’s 2% inflation target in March for the first time in seven years. Personal income surged 0.4%. Wages grew 0.4%. The saving rate remained at 6.8%.