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.

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