Consumer Spending Up 0.5% in July Despite Persistent Inflation, Slightly Missing Expectations

Consumer spending in the United States increased by 0.5% in July compared to June, as per data released by the Commerce Department on Friday. This figure falls slightly short of the anticipated 0.6% rise predicted by FactSet consensus estimates.

The Personal Consumption Expenditures price index, which serves as the Federal Reserve’s preferred gauge for its 2% inflation target, experienced a 0.2% monthly increase. Consequently, the annual rate remained at 2.6%.

Initially, economists projected a 0.2% rise in inflation from June and an unchanged annual rate of 2.6%.

The development is currently ongoing and will be updated with further information as it becomes available.