U.S. Consumer Spending Jumps 0.4% in July, May Hint at Snap of Shrinking GDP Growth
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According to new data from the U.S. Commerce Department, consumer spending in the U.S. rose 0.4 percent in July, the first increase in three months and up from a flat reading in June.
Expectations called for a 0.5 percent rise for the month.
Personal income rose 0.3 percent, which was in-line with expectations.
Coincidentally, Amazon.com (Nasdaq: AMZN) just announced its Kindle Fire has sold out and it new has 22 percent of the U.S. tablet market.
Numbers also came in as GDP was revised 0.2 points higher earlier in the week, to 1.7 percent in the second quarter. Last quarter's GDP was the second lower reading since the end of 2011. With the news in spending today, the table might be set for a potential tick higher in third-quarter GDP.
On Tuesday, the Conference Board reported a mighty drop in consumer confidence, from 65.4 in July down to 60.6 in August, the largest drop since October 2011. Should that confidence level hold, rising gasoline prices and stagnant job growth might cause consumers to pullback into the holiday shopping season.
Traders will keep an eye on Fed chief Ben Bernanke's comments at Jackson Hole on Friday. Recent minutes form the latest FOMC indicated that more easing might be in store, though as of right now rates are still low and expect to remain there through the end of 2014. The next FOMC meeting date is September 12th and 13th, with the minutes to be released three weeks after (early October).
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Expectations called for a 0.5 percent rise for the month.
Personal income rose 0.3 percent, which was in-line with expectations.
Coincidentally, Amazon.com (Nasdaq: AMZN) just announced its Kindle Fire has sold out and it new has 22 percent of the U.S. tablet market.
Numbers also came in as GDP was revised 0.2 points higher earlier in the week, to 1.7 percent in the second quarter. Last quarter's GDP was the second lower reading since the end of 2011. With the news in spending today, the table might be set for a potential tick higher in third-quarter GDP.
On Tuesday, the Conference Board reported a mighty drop in consumer confidence, from 65.4 in July down to 60.6 in August, the largest drop since October 2011. Should that confidence level hold, rising gasoline prices and stagnant job growth might cause consumers to pullback into the holiday shopping season.
Traders will keep an eye on Fed chief Ben Bernanke's comments at Jackson Hole on Friday. Recent minutes form the latest FOMC indicated that more easing might be in store, though as of right now rates are still low and expect to remain there through the end of 2014. The next FOMC meeting date is September 12th and 13th, with the minutes to be released three weeks after (early October).
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