Sales increased 0.7% in July, "a reassuring sign for a U.S. economy that’s facing mounting hurdles."
Consumers increased spending while exporters and manufacturers cut back.
Performance was driven by “a well-balanced mix of spending volumes, lending income, and card fees.”
It’s a peak season for the U.S. golf industry. See how much you know about the business side of this popular sport.
Deceleration in consumer spending is expected to curb the increase and keep interest rates unchanged.
“The economy is in a sweet spot for now," with inflation pressures remaining too weak for the Fed to raise interest rates.
GDP got a boost in Q1 from a sharp decline in imports but economists warn that underlying spending and investment data point to slowing growth.
The measure of consumer spending fell 0.2% after a 1.2% gain in January, signaling tepid economic growth for the first quarter.
The biggest drop in spending since 2009 confirmed expectations that the economy will slow down further in the first three months of 2019.
“I think this is a slowing. I don’t think this is ‘we’re falling into an abyss," one economist says.
U.S. shoppers are benefiting from moderate inflationary pressures, while incomes increased 0.5% last month.
The latest GDP estimate for the third quarter confirms growth is slowing as the big boost from tax cuts starts to fade.
