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31 Jul, 2020 15:05

Americans continue to splash out in June

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Americans continued to splash out even as income growth continued to ease from April's fiscal policy induced bonanzas.

According to the Department of Commerce, personal incomes fell at a month-on-month pace of 1.1% in June.

That followed a 4.4% drop in May and a 12.1% surge in April.

Personal consumption expenditures on the other hand added to the prior month's gain of 8.5%, rising by 5.6% on the month.

In April they had collapsed by 12.9%.

Price pressures meanwhile continued to retrace part of the declines seen over March and April.

The headline price deflator increased at a 0.4% month-on-month pace and by 0.2% at the core level.

To take note of, core PCE was the Federal Reserve's price gauge.

In comparison to a year ago, headline PCE price gains accelerated from 0.5% to 0.8% (consensus: 0.9%) while at the core level they slowed from 1.0% to 0.9% (consensus: 1.0%).

Americans' personal savings rate, which includes taxes, fell from 24.2% for May to 19.0% in June.

In February 2020 personal savings stood at 8.3%.

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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.