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US Consumer Spending Picks Up in June

US Consumer Spending Picks Up in JuneUS Consumer Spending Picks Up in June

US consumer spending edged higher in June, capping a rebound in the second quarter from weak growth in the first months of the year, the US Commerce Department reported Monday.

Consumer spending, which accounts for about 70% of US economic activity, rose 0.2% in June after a 0.7% gain in May and a 0.3% increase in April, the department said, AFP reported.

For the April-June quarter, spending increased at an annual rate of 2.9%, up from a 1.8% pace in the first quarter.

The improvement was led by a 4.8% jump in goods purchases. Growth in spending on services, the sector that generates the most US jobs, was unchanged at 2.1% for the second consecutive quarter.

Inflation remained tepid. The Federal Reserve's preferred inflation measure, the personal consumption expenditures price index rose 0.3% year-over-year in June, accelerating slightly from May.

Excluding food and energy, which can be volatile, so-called "core" PCE prices rose 1.3% for the sixth consecutive month, still well below the Fed's 2.0% target for price stability.

 

Financialtribune.com