Why aren't US households spending?

Bad weather is often used as a justification for poor data, but it's wearing a little thin. If subdued household spending in the US continues, it must surely reflect softer momentum.

Other economic indicators suggest that the United States economy has rebounded nicely after a poor start to the year, but household spending remains fairly subdued and is set to contribute modestly to growth in the June quarter. Nevertheless, the Federal Reserve is set to continuing winding back its asset purchasing program when it meets in July.

In the United States, real personal consumption declined by 0.1 per cent in May, falling short of expectations, to be 1.9 per cent higher over the year. This followed a 0.2 per cent decline last month.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles