Markets Turn Cautious As US Consumer Spending Engine Slows
The Federal Reserve’s preferred inflation measure came in slightly hotter than expected in May—lending support to the central bank’s cautious approach—but personal spending levels missed forecasts, pointing to a more profound slowdown ahead. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.2 percent from the prior month, topping market forecasts for a 0.1-percent increase. On a year-over-year basis, core price growth sped up to 2.7 percent, also exceeding economist estimates for a 2.6 percent advance, and the prior month’s increase was revised up to 2.5 percent. The overall personal consumption...