US consumer spending increases for the second month consecutively
WASHINGTON (US) – US consumer spending saw an increase for a second straight month in June, bringing consumption on a path of a recovery in the third quarter. However, the recovery could be restricted by the coming back of COVID-19 cases and the end of expanded unemployment benefits.
The Commerce Department said on Friday that consumer spending, which makes up for more than two-thirds of US economic activity, increased to 5.6% last month soon after a record jump of 8.5% in May. Consumers brought the spirit back by stepping up for the purchases of clothing and footwear. It was also found that more was spent on healthcare, dining out and on hotel and motel accommodation.
Thursday’s advance gross domestic product report for the second quarter showed that the economy was brought down to a record 32.9% annual rate as consumer spending tanked at a historic 34.6% pace.
That said, the inflation-adjusted consumer spending still remains below its pre-pandemic level.
Monthly inflation ticked up in June, triggered by food and energy goods and services prices. The personal consumption expenditures (PCE) price index saw an increase to 0.2%.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.