• / Free eNewsletters & Magazine
  • / My Account
Home>U.S. consumer spending falls for first time in six months

Related Content

  1. Videos
  2. Articles
  1. Markets and Economy: Put the Big Picture in Perspective

    BlackRock's Heidi Richardson, University of Chicago professor Randy Kroszner, and Morningstar's Bob Johnson tackle today's key macro issues--including employment, housing, consumer and corporate spending, the Fed taper, and much more.

  2. 5 Signs of Fallout in the Market

    Morningstar markets editor Jeremy Glaser studies possible impacts of the Facebook IPO controversy, struggles and turnarounds at Dell and HP, real economy weakness in the eurozone, and slower sales at Tiffany.

  3. Something Is Holding Consumers Back

    Despite the market hitting new highs and moderate inflation , consumer spending has remained soft, says Morningstar's Bob Johnson.

  4. Yellow Flags for Consumer Spending

    Recent lackluster spending data suggest the consumer is not as strong as some may believe, says Morningstar's Bob Johnson.

U.S. consumer spending falls for first time in six months

U.S. consumer spending falls for first time in six months


Consumer spending fell in July for the first time in six months, as Americans cut back on purchases of new cars and other retail goods, the government reported Friday. The drop in spending was a bit of a surprise: economists polled by MarketWatch had predicted a seasonally adjusted 0.1% increase. The reduction in spending last month suggests the economy won't match the second-quarter growth rate of 4.2% unless outlays rise much faster in August and September. July is the first month of the third quarter. The growth in incomes, meanwhile, slowed to 0.2% pace in July from 0.5% in each of the prior two months. It was the smallest gain since December and also below Wall Street expectations. Consumers socked more money away instead of spending it. The savings rate climbed to 5.7% from 5.4% and reached the highest level since the end of 2012. Also, inflation as gauged by the PCE price index rose a scant 0.1%, and the increase over the past 12 months was unchanged at 1.6%. Inflation spiked earlier in the year but has leveled off during the summer. The core PCE rate that excludes food and energy also edged up 0.1%.

-Jeffry Bartash; 415-439-6400; AskNewswires@dowjones.com


Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

08-29-14 0830ET

Copyright (c) 2014 Dow Jones & Company, Inc.

blog comments powered by Disqus
Upcoming Events

©2014 Morningstar Advisor. All right reserved.