U.S. Economic Indicators for July
According to the U.S. Bureau of Economic Analysis, personal consumption expenditures (PCE) rose by 3.7% year-over-year in July. In contrast, personal income increased by 0.4% month-over-month, while personal expenditures only grew by 0.2%. This has contributed to a rise in personal savings to 3%, indicating that consumers are being more selective with their spending, especially amid elevated inflation rates.
Despite the increase in PCE, the moderation in consumer spending suggests a potential path towards lower inflation and a favorable interest rate environment. Spending on goods decreased by $49.9 billion, while spending on services rose by $86.2 billion, reflecting shifting consumer priorities. The S&P 500 index remained flat following the release of these figures.
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