U.S. consumers take a break in May as inflation rises | Business and Financial Issues

The US economic engine, consumer spending, was in full swing in May as inflation continued to rise.

U.S. retailers still saved more money in May, but revenue and revenue declined as the hurricane-related stagnation of the plague subsided and some countries withdrew from government programs out of work.

Personal expenditure control (PCE) – consumer spending policy – has not changed in May since last month, the US Bureau of Economic Analysis (BEA) on Friday, when a significant increase in capital expenditure was achieved due to a reduction in commodity spending.

Updated due to inflation, PCE fell by 0.4% last month since April.

PCE is a sign of self-awareness because consumer spending is driving about two-thirds of US economic growth. After a steep climb in March and continuing to climb in April, it destroys riders in May.

The protest area is showing a “decline in government benefits”, the BEA reported in the newspaper, as a few checks affected American bank accounts last month, and some countries withdrew from government programs out of work.

The $ 300 a week-long fundraising campaign for the unemployed has turned into a political game in the US as businesses across the country struggle to find workers even though millions of Americans are still unemployed.

Some Republicans say the federal government is preventing workers from finding work.

A further 26 U.S. states have said they are scrapping government programs that support unemployment, which also included a lawsuit last week.

But economists point out another factor that could deter workers on the sidelines, from retirement and the lack of childcare during the epidemic, for fear of contracting the COVID-19 virus. Labor pressures when businesses reopen and expand at the same time can also lead to a gap between the unemployed and the number of jobs that need to be filled.

Government consolidation was reflected in private spending in May, which fell 2% since last month. Losses began to hit hard, falling to 2.3 percent.

Meanwhile, inflation continues to rise due to barriers to the sale of goods due to the epidemic of rising commodity prices and the burden on businesses that are trying to increase employment.

The PCE price index – a Federal Reserve-funded approach – rose by 0.4% last month. Except for food and energy, it went up by 0.5%.

Rising prices reach the poorest households, mainly because they consume much of their income.

In the meantime, the world’s largest economic regulator, the Federal Reserve, is pushing Americans to return to work on the economic crisis.

Fed chief executive Jerome Powell has repeatedly said that temporary inflation needs to be temporarily confirmed, and the Fed has no plans to raise interest rates until the labor market in the country is healed.