U.S. consumer spending slows in January; income surges

WASHINGTON - U.S. consumer spending rose less than expected in January, a loss of momentum that could be exacerbated by the rapidly spreading coronavirus, which has triggered a sharp stock market sell-off and revived fears of a recession.

The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.2% last month as unseasonably mild weather reduced demand for heating and undercut sales at clothing stores. The coronavirus has killed more than 2,000 people and infected at least 80,000 people, most of them in China.

The PCE price index increased 0.3% in December. In the 12 months through January, the PCE price index accelerated 1.7%. That was the biggest gain since December 2018 and reflected the drop of 2019’s low readings from the calculation. The PCE price index advanced 1.5% year-on-year in December. When adjusted for inflation, consumer spending nudged up 0.1% in January after rising by the same margin in the prior month. That suggests consumer spending got off to a slow start in the first quarter after cooling considerably in the final three months of 2019.

In second report on Friday, the Commerce Department said the goods trade deficit contracted 4.6% to $65.5 billion in January. Goods imports tumbled 2.2% last month and exports dropped 1.0%.

Couldn't prove this with MY pay stubs! So it must not be that statistically reliable. When does MY income get to 'surge?'

Örnek 1- Turkey has started a rightful operation against Syrian Regime to protect its borders after the vicious attacks by Syrian Regime against civilians in Turkey controlled zones. 2- Turkey has opened its doors to Europe for 72 hours. All immigrants are free to pass! Devam

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. consumer spending could see one-two punch from stocks drop, coronavirusThe coronavirus outbreak has yet to spread meaningfully to U.S. shores, but fear...
Source: Reuters - 🏆 2. / 97 Read more »

Consumer spending is still rising steadily, but coronavirus looms as potential brakeAmericans bought more new autos in January and spent more on hotels and eating out, but consumer spending has slowed since last summer and it’s unlikely to improve much so long as the coronavirus threat persists. Consumer spending increased a mild 0.2% last month.
Source: MarketWatch - 🏆 3. / 97 Read more »

As coronavirus cases surge, the U.S. military prepares for possible pandemicAs the novel coronavirus continues to spread beyond China, the U.S. military announced its first confirmed case and commanders across the globe braced for the worst.
Source: YahooNews - 🏆 380. / 59 Read more »

Durable-goods orders fall slightly in January - and now face a threat from the coronvirusOrders for durable goods fell slightly in January owing to a reversal in bookings for military weapons and less demand for autos, but business investment is...
Source: MarketWatch - 🏆 3. / 97 Read more »

Why Hasn’t the U.S. Done More Coronavirus Tests?The U.S. has done very little testing for the coronavirus. And thanks to problems at the CDC, it’s not clear when the country’s testing capacity will improve There better be a lot of questions about this. Didn't the Republicans use Ebola(which never landed in this country) to win a few seats? Oh, please stop the
Source: NYMag - 🏆 111. / 63 Read more »

Lower mortgage rates, mild weather lift U.S. new home sales to twelve and a half year highSales of new U.S. single-family homes raced to a 12-1/2-year high in January, po...
Source: Reuters - 🏆 2. / 97 Read more »