US Consumer Spending Up A Solid 0.4 Percent in July

U.S. consumer spending rose a solid 0.4 percent in July, the sixth straight month of healthy gains. At the same time, a key gauge of inflation posted its sharpest annual gain in six years, likely keeping the Federal Reserve on track to keep raising interest rates gradually. The July spending gain, fueled by strong job growth and tax cuts, followed a similar 0.4 percent rise in June, the government said Thursday. Inflation, as measured by a barometer closely watched by the Fed, rose 2.3 percent for the 12 months that ended in July, the fastest year-over-year increase since 2012. Personal income, which provides the fuel for future spending increases, advanced by a moderate 0.3 percent in July after a 0.4 percent June increase. Modestly higher wages and salaries reflect an unemployment rate that has reached its lowest level in nearly 18 years.

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... Aka we are buying things we can’t afford :)

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Inflation rate, annual percent change (2018, in % , IMF)

Venezuela: 13,860.0
S Sudan: 104.1
Egypt: 20.1
Nigeria: 14.0
Turkey: 11.4
India: 5.0
UK: 2.7
China: 2.5
USA: 2.3
Canada: 2.2
Germany: 1.6
France: 1.5
Japan: 1.1

 

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If that spending will fall, that inflation will go higher.... and, recession here we come!

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Fed isn't going to be able to control it soon. Commodities (along with food prices) are going through the roof

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Spending money on bills, groceries and mortgage - it's not economy or plus in budget, it's the bare essentials.

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I wonder how many consumers were part of survey? 350 millions, no way... It's always good to know numbers because study without them has no basis in reality

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