In what could be marked as the third straight month of rise in US Consumer Spending, US Commerce Department said in a statement on Friday that the US consumers had heightened up their expenses by 1.9 per cent last month compared to the same time a year earlier, suggesting the impacts of a swathe of supports for a submerging US economy reeling to emerge from the grip of the Pandemic outbreak which had persistently held back a recovery and kept over 27 million Americans unemployed.
In point of fact, according to the Friday report from the US Commerce Dept., US Consumer Spending, the lifeblood of US economy accountable for roughly two-thirds of entire US economic activities, jumped by 1.9 per cent last month, however, the reading had still reflected a slowdown in contrast to prior two months since June Consumer Spending had surged by 5.6% that followed a record rise of 8.5% in May.
The report in tandem had also shown that the Americans’ gross income soared 0.4 per cent in July that followed two straight months of decline.
US Consumer Spending rose in July, but uncertainties loom large
Apart from a sluggishness in consumer spending, Friday’s report came at a time when an ailing US economy has been grappling with a gauge of downbeat factors such as a zigzag course in the landscape of economic recovery, a higher unemployment rate alongside a grave uncertainty on when or where the American businesses would again feel confident enough to step up their investments.
Besides, the report also came forth weeks after an additional $600 per week in unemployment benefit pay-checks had run out, eventually dimming the outlook of consumer spending over the coming months. Meanwhile, referring to a growing uncertainty among American citizens over the future of the economy amid a steady spike in pandemic cases which in effect had been tormenting a broad-based economic recovery, a senior US economist at Oxford Economics, Lydia Boussour said following the reveal of the report, “The steep decline in federal support for unemployed workers and heightened uncertainty will depress consumer confidence and spending and weigh on the broader economic recovery. ”