American consumer spending continues to rise
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.
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