US Consumer Spending Cools to 0.2% in July as Inflation Holds at 3.7%
Updated
Updated · The Washington Post · Aug 26
US Consumer Spending Cools to 0.2% in July as Inflation Holds at 3.7%
3 articles · Updated · The Washington Post · Aug 26
Summary
July consumer spending rose 0.2%, down from 0.3% in June, with Americans cutting back on goods while spending more on services.
The slowdown came as the Fed’s preferred inflation gauge increased on a monthly basis, leaving the annual PCE inflation rate unchanged at 3.7% and well above the 2% target.
More than five years of above-target inflation are keeping attention on the Fed’s next meeting, where investors are weighing whether another rate hike could return to the table.
Morgan Stanley’s Ellen Zentner said the inflation uptick and continued economic resilience did not change the September balance yet, but similar data ahead could raise pressure on the Fed to act.