US Consumer Spending

Inflation and higher interest rates are forcing households to prioritise essentials and cut back on discretionary spending

The personal consumption expenditures (PCE) price index rose 0.3% last month, the Commerce Department's Bureau of Economic Analysis said

Fears that the economy could slide into recession in early 2024 could see households reluctant to spend and instead build their savings

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, gained 0.4% last month, the Commerce Department reported on Friday

The finding is at odds with the optimism that's permeated US equity markets for most of the summer, as cooling inflation and low unemployment bolstered hopes for a so-called soft landing

The PCE price index increased 0.4% in April after rising 0.1% in March. In the 12 months through April, the PCE price index increased 4.4% after advancing 4.2% in March

The economy expanded at a 2.6% rate in the fourth quarter

The data was included in the advance fourth quarter gross domestic product report, which showed consumer spending maintaining a solid pace of growth

The personal savings rate, as a percentage of disposable income, fell to 4.4 per cent in April, the lowest level since 2008 in the US, according to the Commerce Department

The rebound in spending could further temper expectations for a sharp slowdown in economic growth in the first quarter

With every trip to the grocery store and gas pump eating away a little more of their paychecks, people have less left over for discretionary purchases

US consumer spending rebounded by a solid 1.3 per cent in October despite inflation

WASHINGTON (Reuters) - U.S. consumer spending increased by the most in seven months in January as the government doled out more pandemic relief money to low-income households and new COVID-19 infections dropped, positioning the economy for faster growth in the first quarter.

Consumers cut back on purchases of goods like new motor vehicles, clothing and footwear

US consumer spending fell 0.4% in November, the first decline since April, as Americans confronted a newly resurgent virus.

US consumers increased their spending by 1.4 per cent in September, a modest gain but far less than the big increases of late spring

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Consumer spending will probably remain weak relative to the past as people avoid activities that require high levels of social interaction for health reasons, Boston Fed President Eric Rosengren said

So deep was the pullback in the spring that even with two months of gains, consumer spending was still down at a record annual rate of 34.6% in the April-June quarter

The increase in consumer spending in February was in line with economists' expectations