[Washington, 30th Archyde.com]–The US Department of Commerce announced on May 30 that consumer spending (PCE) in May increased by 0.2% from the previous month. April was revised downward from the previous announcement (up 0.9%) to an increase of 0.6%. The May market forecast was up 0.4%.
Private consumption accounts for more than two-thirds of America’s economic activity.
While the shortage of automobiles continued, the growth rate was lower than expected because the purchase of other products was restrained due to rising prices. It was a further sign that economic growth has lost momentum since the beginning of the second quarter of 2022.
Gross domestic product (GDP) in the first quarter of 2010 decreased by 1.6% on an annualized basis. Record trade deficits have been a major contributor to negative growth since the rapid recession caused by the pandemic of the new coronavirus nearly two years ago. Although the trade deficit narrowed in the first two months of the second quarter, the slowdown in consumer spending has left a pile of unsold goods. This weighs on growth and may raise concerns about a recession.
The PCE price index in May rose 0.6% month-on-month and continued to rise. April was up 0.2%.
It increased by 6.3% from the same month of the previous year, and the rate of increase was the same as in April.
The core PCE price index, excluding volatile food and energy, rose 0.3% month-on-month, with the same growth rate for four consecutive months. The year-on-year rate was up 4.7%, and in April it was up 4.9%.
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