Consumer Spending Gains, Pricing Pressures Ease in the United States

This month’s consumer spending showed a resilient American consumer while the personal consumption expenditures index (PCE) stayed the same from June. Both the PCE and the Core PCE price index, which strips out the more volatile energy and food components, advanced 0.2 percent for the month.

Consumer spending accounts for over two-thirds of U.S. economic activity rose by 0.8 percent in July, the most in six months. Spending on goods gained 0.7 percent, driven by products with a short life span, including pharmaceuticals, recreational items, groceries and clothing. Personal income gained 0.2 percent, while savings fell to 3.5 percent. 

The PCE is a measure of the spending on goods and services by people of the United States, measuring the change in goods and services consumed by all households and nonprofit institutions serving households. The PCE is the Federal Reserve’s preferred measure of inflation and differs from the consumer price index, or CPI, which measures the change in the out-of-pocket expenditures of all urban households.

Copyright © 2023 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com’s content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

]]>