Consumer spending increased more than expected in June in the USA
Personal consumption expenditures in the US increased more than expected in June with 5.6 percent
According to the data released by the Ministry of Commerce in the USA, personal consumption expenditures increased by 5.6 percent in June, more than expected. The expectation was 5.2 percent. Personal spending had increased by 81 percent in May.
Personal revenues were below the expectation that the US government’s one-time incentive supports would lose 1.1 percent, down 0.6 percent in the same period. Personal income was down 4.2 percent the previous month.
While the decline in personal income still reflects the resolution of the sharp increase from the one-time incentive in April, unemployment insurance payments rose $ 111 billion annually in June.
PCE prices rose by 0.8 percent year on year and 0.4 percent monthly. Core PCE increased 0.9 percent year on year and 0.2 percent month on month. Expectations were to increase by 1 percent and 0.2 percent, respectively.
The 2.2 percent increase in wages reflects the recruitment that began with the reopening of the country’s economy.