Widget Image
Follow PPD Social Media
Thursday, November 14, 2024
HomeNewsEconomyCommerce Department: Consumer Spending Price Index Weakest Since 2009

Commerce Department: Consumer Spending Price Index Weakest Since 2009

consumer-spending-consumer-sentiment-reuters


consumer-spending-consumer-sentiment-reuters

The Commerce Department reported Monday that U.S. consumer spending was unexpectedly flat in April as households cut back and continued to save. The report, as with data released last week, indicates the economy was struggling in the second quarter after shrinking in first quarter.

The Commerce Department also claimed there were no inflation pressures, with a price index for consumer spending recording its smallest gain since late 2009 on an annual basis.

Economists polled by Reuters had forecast consumer spending, which represents more than two-thirds of all U.S. economic activity (GDP), gaining 0.2 percent in April. March’s numbers were initially reported to have increased by 0.4 percent.

When adjusted for inflation, however, consumer spending was unchanged in April after allegedly rising by 0.4 percent in March. Gross domestic product (GDP) contracted at a 0.7 percent annual rate in the first quarter after the government initially estimated a pathetic 0.2 percent gain.

Anemic consumer spending data in addition to weak industrial production are suggesting growth in the second quarter is also deficient, despite upbeat reports on the labor market, business spending plans and housing.

Excluding food and energy, prices ticked up 0.1 percent for a third straight month. The so-called core PCE price index increased 1.2 percent in the 12 months through April.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial