Tags: consumer | spending | finances | cautious

Wary Consumers Increase Spending by Modest 0.4%

Wary Consumers Increase Spending by Modest 0.4%
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Friday, 28 June 2019 08:54 AM

Consumer spending increased 0.4% in May, a modest gain that suggests Americans remain cautious about their finances.

The Commerce Department said Friday that incomes rose 0.5% and inflation remained tame, increasing just 1.5% in the past year. That's far below the Federal Reserve's target of 2%.

The report comes after a measure of consumer confidence slipped Tuesday. Spending grew last month at its slowest pace since February, a trend that could hold back the broader economy.

The tame inflation reading may make it more likely that the Fed will lift short-term interest rates in the coming months. Fed officials have cited the pace of inflation as a key gauge they are watching as they consider changes to their interest rate policies.

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Economy
Consumer spending increased 0.4% in May, a modest gain that suggests Americans remain cautious about their finances.
consumer, spending, finances, cautious
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2019-54-28
Friday, 28 June 2019 08:54 AM
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