Consumer spending jumped in June, federal data show, as Americans continue to absorb stubbornly high prices on groceries, gasoline and other staples. Overall...
Because consumer spending accounts for two-thirds of the U.S. economy, policymakers and economists have been closely monitoring for signs of a cool-down.The Associated PressConsumer spending jumped in June, federal data show, as Americans continue to absorb stubbornly high prices on groceries, gasoline and other staples.
Personal income in June increased 0.6% and the personal consumption expenditures price index — which accounts for the value on the goods and services — climbed 6.8% from the same time last year. That compares with the 6.3% increase recorded in May. Gas was the standout figure in the report’s spending breakdown, no surprise given that U.S. prices swelled to record highs in June, with the national average for a gallon of fuel breaching $5 for the first time. Spending surged nearly 49% that month, after rising 20% in May.back-to-school shopping
Mark Hamrick, senior economic analyst at Bankrate, said those numbers could be explained by supply and demand for both new and used vehicles over the past few months, in part thanks to shortages of semiconductor chips. The House on Thursday passed the $280 billion Chips and Science Act, which sets aside roughly $52 billion for domestic semiconductor manufacturing.
On Thursday, the BEA reported that gross domestic product fell for a second straight quarter, sliding at an annualized 0.9% from April to June. That follows the 1.6% decline in the three months ended March 31. Though six months of contraction is a typical indicator of a recession, the official determination is made by a panel of experts. Still, recessions aren’t typical when unemployment is near record lows.
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