Consumer expenses were retreated as a double crazy of bad news until inflation to inflation in May

Common expenses fell by 0.1% from the previous month and income 0.4%, trade department declare Friday. As for the heels of a report that GDP than expected in the first quarter, the information shows the rapidly lower economy.

“Private consumption costs are weak and continue to weaken,” said, “Eugenio Aleman,” Eugenio Aleman, “Raymond James. Luck.

“We knew that the consumer demand was on the weak side, but we looked at the first quarter in the first quarter of the consumption yesterday. Today’s number confirmed that this is not a one.”

Both spending and income figures were distorted with one-time changes. Spending in cars, lower the total expenditure, for Americans, they moved faster to get vehicles in the spring to advance the tariffs. But spending air tickets, food and hotels, fell into the signs of internal consumption pressure than all time changes. The spending of services increased in total, only 0.1% in May, the lowest increase in four and a half years.

“Because consumers are not strong enough to manage this (higher prices), rest, travel, hotels, such things are spending less,” he said.

Retail sales have sharply fell sharply to 0.9% in a separate report on a separate report last week.

Revenues also increased payments in social security benefits, increased payments in March and April, allowed some pensioners working for state and local governments to receive higher social security payments.

In May, inflation increased by 2.3% of the annual prices, increased by 2.3%. The main prices excluding plump food and energy costs, a year ago, increased by 2.7% from a year before April 2.6%.

In the first three months of this year, consumer expenditures are only 0.5%, slow in the first two months of the second quarter. Most economists may think that the figures are thinking of a dramatic decline. “The US economy is being prepared because summer slows down” Ugly Economists wrote. “Both consumption costs and business investments are expected to slow down.”

In recent years, consumers could continue to spend more in order to increase real income and some government benefits. “However, these two support now faded and are preparing to quickly deteriorate the image of real income, because tariffs increase prices,” he said, “Economist Macroeconomist in Pantheon. Many skittish to get personal deposits down and consumers to borrow, “more likely to consume more slow and coming soon.”

Real revenues write this year, as well as the price of a weak business market, as well as prices. At the same time, the inflation rate is significantly higher than 2% of the federal reserve every year, it is impossible to reduce proportions in proportion.

“So many uncertainty is still stretching, the fed will probably stop reducing ratio for time,” he said.