US consumers tightened the purse strings in May in response to weaker employment and rising inflation. Purchases were essentially flat for the month after a 0.3 percent gain in April.
“The quarter is going to be very slow,” said Christopher Low, the chief economist at FTN Financial in New York who correctly forecast household spending. “The biggest explanation for that is gas prices, so obviously the fact that oil has fallen quite a bit in the last couple of weeks is a really good thing. Relief just in time.”
Source: Bloomberg