US consumer spending increased stronger than expected
Consumer spending in the US increased by 1.9 percent in July, more than expected
The increase in consumer spending in the US weakened somewhat in July with the increase in coronavirus cases. On the other hand, spending may slow further with cuts in support payments for the unemployed.
Household spending in the US increased by 1.9 percent in July compared to the previous month. This data was expected to increase by 1.6 percent, according to the median forecasts of economists surveyed by Bloomberg. Personal income, on the other hand, was expected to decline by 0.2 percent in the period in question but rose 0.4 percent.
The slowdown in consumer spending, which covers two-thirds of the US economy, points to a recession in the economic recovery after two months of strong course. Expenditures have increased in recent months, while total expenditures are still below pre-pandemic levels. Consumer spending may slow further in August, with the $ 600 weekly support paid to unemployed Americans ending at the end of July.
The report showed that salaries and wages rose 1.4 percent in July, indicating that hires and re-hires are ongoing due to the reopening of businesses, despite a slowdown compared to increases seen in the previous two months.