US consumer spending tumbles as Fed rate-cut bet jumps amid coronavirus


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US consumer spending tumbles as Fed rate-cut bet jumps amid coronavirus

On Friday, the 28th of February 2020, US government data had signalled a likely pause of the world’s No. 1 economy’s record long expansion currently at its eleventh year, as US consumer spending, the lifeline of US economy accountable for roughly two-third of entire US economic activity had witnessed a sharp slowdown in January, while analysts said the US consumer spending reading could lose further ground amid a fast-spreading coronavirus outbreak across the globe that had wiped out more than $6 trillion of the major global equity markets this week and stoked frets of a recession, eventually prompting a majority of American nationals to squeeze up spending.

Besides, according to the US economic data released on Friday (February 28th), GMT. 19.00, US core personal spending remained unchanged to 1.6 per cent from a year earlier, while US consumer spending fell to 0.2 per cent from 0.4 per cent recorded in December, 2019, despite a rise of 0.5 per cent in personal earning on a monthly basis, while in context of a likely catastrophe dangling fire over US economy, personal savings rose to $1.33 trillion in January from $1.26 trillion in December, 2019, marking up the index’s highest reading in eleven months.

Meanwhile, forecasting a likely holocaust on US consumer spending over the coming months, an economist at leading US lender JPMorgan, Daniel Silver said following the reveal of Friday’s (February 28th) data, “With consumers often responding to changes in stock markets, some weakening in sentiment could be coming soon. ”