Reports issued by the US Bureau of Economic Analysis, a branch of the Department of Commerce, revealed sluggishness in American spending and income levels at the consumer level. Three reports – Personal Spending, Personal Income, and the Core PCE Price Index – concur that US consumption is stagnating through the record hot summer months.
Personal spending stands out as the only indicator among the three to experience a contraction. Spending levels declined by approximately 0.2% in June. The other two reports each signaled a sluggish 0.1% growth, moderately below market forecasts. The news piles atop several other indicators of growing consumer pessimism which may lead the US dollar (USD) to make gains in the days ahead due to safe-haven asset purchases by global investors.
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