-MFR
According to the official data, the US consumer spending and core PCE prices advanced in line with economists' expectations in May.
The Commerce Department release indicates that personal spending went up by a seasonally adjusted 0.4% during the last month, while April's data, in turn, was revised up to 1.1% from a previously recorded jump of 1.0% that had already been its largest soar in seven years. Meanwhile, consumer spending is the single biggest source of US economic growth, which implies as much as two-thirds of economic activity. The increase in following data could be explained lifted demand for automobiles and other goods, however it is worth to point out, that fears Britain's will leave the European Union could damage confidence and force households to cut consumption. In the meantime, personal income went up 0.2%, below forecasts of 0.3% gain and compared to the 0.5% in the preceding month. Meanwhile, the Federal Reserve uses core PCE as a tool in order to determine whether to raise or lower interest rates, with the aim of preserving inflation at a rate of 2% or below. Currently, the US economy is rebounding from a dim start of the year, influenced by resurgence in consumer spending.
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