Arab Today, arab today us consumer spending stalls
Last Updated : GMT 05:37:54
Arab Today, arab today
Arab Today, arab today

US consumer spending stalls

Arab Today, arab today

Arab Today, arab today US consumer spending stalls

Washington - Arabstoday

US consumer spending stalled in May as purchases of autos flagged while confidence dropped to a six-month low in June, the latest signs of trouble for the economy. Although another report on Friday showed manufacturing activity in the Midwest picked up this month, factories saw a modest decline in new orders. The Commerce Department said consumer spending was unchanged in May, failing to rise for the first time since November, after nudging up 0.1 percent the prior month. Consumer spending accounts for more than two-thirds of US economic activity. “We’re seeing consumer spending come off the boil a bit over the last few months. That’s to be expected, given uncertainty across the board and the troubling headlines we’ve seen,” said Omer Esiner, chief analyst at Commonwealth Foreign Exchange in Washington. Spending could weaken further as uncertainty generated by the debt crisis in Europe and an unclear fiscal policy path at home force Americans to scale back on consumption. A separate report showed the Thomson Reuters/University of Michigan’s consumer sentiment index fell to 73.2 in June from 79.3 in May. While the outlook for the economy has darkened in recent months, it continues to expand modestly. A third report showed factory activity in the Midwest ticked up in June, with employment rising to its highest level since February. New orders, however, edged down. The Institute for Supply Management-Chicago business barometer rose to 52.9 this month from 52.7 in May. A reading above 50 indicates expansion in the regional economy. “The message from Chicago is that things are not spiraling down out of control,” said Dean Maki, chief economist at Barclays in New York. The reports had little impact on US financial markets, with investors focused on developments in Europe. Euro zone leaders agreed to allow a rescue fund to be used to stabilize the region’s banks, sending stocks on Wall Street rallying. US Treasury debt prices fell, while the dollar weakened against basket of currencies. Inflation pressures muted Consumer spending rose 0.1 percent after adjustment for inflation in May. The small rise caused economists to tweak their second-quarter growth forecasts. Economists at Goldman Sachs lowered their gross domestic product estimate to a 1.6 percent annual pace from 1.7 percent. The economy expanded at a tepid 1.9 percent rate in the first quarter. While weak gasoline prices contributed to holding down spending last month, they put downward pressure on inflation. A price index for personal spending fell 0.2 percent in May, the first decline in a year. The index was flat in April. In the 12 months through May, the PCE index was up 1.5 percent, the smallest increase since January last year. It increased 1.9 percent in April. A core measure that strips out food and energy costs advanced 0.1 percent last month after rising by the same margin in April. In the 12 months through May, the core PCE rose 1.8 percent, slowing from 2.0 percent the prior month. Last month, spending on long lasting goods, like autos, fell 0.4 percent after dipping 0.2 percent in April. Auto sales had been boosted by pent-up demand after last year’s earthquake and tsunami in Japan left showrooms bereft of popular models. Automakers reported unit sales declined in May. Spending on nondurable goods fell 0.8 percent, with services advancing 0.3 percent. Weak income growth as the economy struggles to generate enough jobs to cut into high unemployment is also curbing spending. Income rose 0.2 percent after a similar gain in April. The increase was in line with economists’ expectations. The amount of income available to households after accounting for taxes and inflation, rose 0.3 percent. That followed a 0.1 percent gain in April. With spending less than income, the saving rate rose to 3.9 percent from 3.7 percent the prior month.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us consumer spending stalls Arab Today, arab today us consumer spending stalls

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us consumer spending stalls Arab Today, arab today us consumer spending stalls

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Egypt tourism revival steady but slow

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today France opens door to post-2025 talks

GMT 05:16 2017 Wednesday ,20 September

France opens door to post-2025 talks
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today 5,000 'Dieselgate' deaths in Europe per year

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Renault-Nissan to launch

GMT 10:44 2017 Saturday ,16 September

Renault-Nissan to launch
Arab Today, arab today Eman Al Assy receives three offers

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers
Arab Today, arab today 'Severe' Typhoon Doksuri pounds Vietnam

GMT 15:49 2017 Friday ,15 September

'Severe' Typhoon Doksuri pounds Vietnam

GMT 11:10 2017 Friday ,15 September

Fadl Shaker retreats from surrendering himself

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 10:25 2017 Thursday ,14 September

Greece fumbled oil spill response

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 21:57 2017 Sunday ,17 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday