American consumer spending continues to rise

By Sumit Modi

Thanks to increased demand in the automotive and goods sectors, American consumer spending rose for the second month in a row in May.

Consumer expenditure accounts for over two thirds of US economic activity, and last month’s 0.4 percent increase suggests improved growth in Q2.

However, Brexit – the UK’s vote to leave the European Union – could impact spending as it may affect consumer confidence.

Brexit erased around $3.1 trillion from global stock markets across two days, and financial unrest may continue, exacerbating future expansion and investments.

Despite this, alongside gains in spending and a 0.2 percent rise in personal income, inflation has remained benign. 

 

Follow @BizReviewUSA and @NellWalkerMG

Read the June issue of Business Review USA & Canada here

Share

Featured Articles

Microsoft, McDonald’s latest firms to run civil rights audit

Microsoft and McDonald’s join Amazon, Citi, JPMorgan and others in conducting civil rights audits, as investor pressure to achieve racial equity mounts

Deep dive: Investment in carbon capture rises as CO2 spikes

Investment in carbon removal solutions and startups is heating up as fast as the planet, with Temasek and CEMEX Ventures the latest VCs to launch funds

Dialight envisions a safe industrial world with LED lights

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, cyber, 5G, cloud speakers at TECH LIVE LONDON

Technology & AI

Eight big announcements made at Davos 2022, from ESG to tech

Sustainability

Hear Vodafone Business cyber chief Kawalec at Cyber LIVE

Leadership & Strategy