Consumer spending in US may be losing pace
ESTIMATES of consumer and business spending in the United States are being cut, suggesting economic growth was slower than previously reported in the first quarter.
In its final estimate on the first quarter yesterday, the Commerce Department said gross domestic product expanded at an annual rate of 2.7 per cent instead of the three per cent it reported last month. The pace of growth was below the three per cent expected by the market.
Consumption data is implying a slowdown in the recovery but a separate report – the Thomson Reuters/University of Michigan's index – showed US consumer sentiment in June at its highest level since January 2008, which should help to support spending.