Weak auto demand crimps U.S. consumer spending


News For The Blind

http://www.reuters.com/article/2015/08/03/us-usa-economy-idUSKCN0Q81C220150803

U.S. consumer spending in June advanced at its slowest pace in four months as demand for automobiles softened, suggesting the economy lost some momentum at the end of the second quarter.

But the moderation in consumer spending could be temporary as some automakers on Monday reported stronger-than-expected U.S. sales in July, which kept the industry on a pace for its best year in a decade.

Other data showed manufacturing continued to struggle last month, with activity weakening slightly. The combination of anemic consumer spending and sluggish manufacturing likely do not change expectations the Federal Reserve will raise interest rates this year, especially with the labor market tightening.

“We’re not too worried by this (data) as a further improvement in the labor market should support spending before long. The Fed will probably place more weight on the … decent news on the labor market. A hike in September remains a…

View original post 428 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s