#economy#European Union#Brexit#American consumer spending continues to rise#American economy

American consumer spending continues to rise

Sumit Modi
|Jul 4|magazine3 min read

Thanks to increased demand in the automotive and goods sectors, American consumer spending rose for the second month in a row in May.

Consumer expenditure accounts for over two thirds of US economic activity, and last month’s 0.4 percent increase suggests improved growth in Q2.

However, Brexit – the UK’s vote to leave the European Union – could impact spending as it may affect consumer confidence.

Brexit erased around $3.1 trillion from global stock markets across two days, and financial unrest may continue, exacerbating future expansion and investments.

Despite this, alongside gains in spending and a 0.2 percent rise in personal income, inflation has remained benign. 

 

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