Consumer Spending Increased As Economic Growth Went Up And Inflation Stood Low

Business

Last few months have been perfect for US consumers because the economic power of buyers has increased at a reasonable rate. A new report has come out which shows that consumer spending for May was up by more than 0.4%. Now, this is the third time in a row, consumer spending has increased because in April consumer spending was up by 0.6%, which shows that the US economy is performing exceptionally well.

If we look at a recent report, then it shows an excellent economic growth rate as the primary reason behind such an impressive consumer spending figure. The US government managed to lead the country in a tremendous industrial phase, and that’s why consumer spending is increased significantly. Another important thing which this report indicates is that ordinary citizen’s income has also gone up by 0.5% even during this trade war situation.

Trump administration is trying to get things done quickly, and that’s why they have managed to keep a low inflation rate. The rate of inflation stood at just 1.6%, which was not anticipated by many economists. Spending wise many Americans bought cars, trucks, rented homes and spent the rest of their income on food. In a nutshell, many consumers spending went into those goods and items which are mostly in the form of durable goods. Now, as a demand for food went up prices of these items also rose by 0.2%, which made food and beverage items a little bit more costly. Inflation is still low because of which the Feds are not worrying that much about the US economy and they are still waiting to cut rate of interest. President Trump took US into that trade war which is going on from the last two months, and it’s affecting negatively on some parts of the country’s economy.

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