American consumer spending rallies

American consumer spending rallies

In August, American consumer spending surged steadily, backing hopes for firm economic rally in the third quarter. Moreover, a measure of underlying inflation was still at the US key bank’s 2% objective for a fourth straight month.

On Friday, the Commerce Department disclosed that consumer spending, accounting for more than two-thirds of American economic activity, tacked on by 0.3% in August after July’s unrevised 0.4% leap. The previous month spending was powered by outlays on healthcare that compensated a sag in car sales.

August's rally in consumer spending appeared to be in line with experts’ estimates.

When updated for inflation, in August consumer spending added 0.2% having soared by 0.3% in July.

The report showed up on the heels of data on Thursday disclosing a dive in orders for primary capital products in August as well as a further extension of the products trade deficit that helped market experts to had their GDP estimates downgraded for the third quarter to a 2.8% annualized rate.

As a matter of fact, in the second quarter the American economy rallied at a 4.2% tempo, driven by firm consumer spending along with farmers front-loading soybean exports to China before this country’s retaliatory levies came into effect in July.

China and America are embroiled in a worsening trade conflict. Market experts have already warned that the increasingly bitter trade feud could impact consumer and business spending.

American Treasury yields kept to session minimums after the data. American stock index futures headed south, while the USD index surged versus a pack of key currencies.

Spending on goods surged by 0.3% in August, probably backed by higher gasoline prices. In July, spending on products ascended by 0.5%. As for outlays on services, they managed to rally by 0.4%.

Personal income added 0.3% in August.



British budget gap inches down

In September, Britain's authorities faced a smaller budget deficit than anticipated, although the improvement won’t probably help a lot to have minister Philip Hammond financed as he’s working on his annual budget…

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera