U. S. Consumer shows signs of cracking
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
U.S. data released this week signals trouble for the economy, according to a note from BCA Research on Friday. While first quarter GDP growth might have been revised fractionally higher from
-0.3% to -0.2%, there was a steep downward revision for consumer spending from 1.8% to 1.2% for the same period. Meanwhile, April’s home sales saw the largest drop-off in three years with a
6.3% decline. These indicators suggest hard data may finally be ‘catching down’ to the soft data, which has been suggesting weaker domestic demand and depressed consumer sentiment for
several months now. Although worst-case scenarios for trade wars might have been averted thus far, these data suggest they are generating negative economic momentum.