Market updates on July 16
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American consumer spending reports the greatest gain since 2009
In March, American consumer spending went up by the most for over 9-1/2 years, although price pressures were still muted, with a major inflation gauge reporting its smallest annual yield for 14 months.
On Monday, the Commerce Department told that consumer spending, amounting to over two-thirds of American economic activity, rallied by 0.9% because households increased purchases of cars and also spent more on healthcare.
In February, consumer spending soared by up to 0.1%. January’s data was updated upwards to demonstrate consumer spending rallying by 0.3% instead of the previously posted 0.1% ascend.
The publication of the February spending data was postponed by a five-week shutdown of the US federal government, which concluded on January 25. Market experts had hoped consumer spending would rally by 0.7% last month.
When updated for inflation, consumer spending headed north by 0.75% in March, although in February it was intact.
The data came with last Friday's first-quarter GDP report. Moreover, March's rally in real consumer spending dropped a hint at an acceleration in consumption probably occurred in the second quarter. In the first quarter, consumers spending went up at a 1.2% annualized rate that appears to be the slowest outcome in 2019.
Last quarter, the American economy headed north by 3.2%.
Last month, spending on goods bounced off 1.7%, with outlays on long-lasting manufactured goods, including vehicles jumping by 2.3%. Additionally, outlays on services went up by approximately 0.5% the previous month, powered by healthcare spending.
Without energy and food, the personal consumption expenditures price index stood still having ascended by about 0.1% in February.
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