Growth of consumer purchases in the USA exceeded the expected level with households buying a range of goods and services, according to the Commerce Department's report.
The increase amounted to 0.4 percent in June, what is crucial, since two-thirds of U.S. economic activity accrues to a consumer spending.
“The continued buoyancy in consumption expenditures points to a favorable handoff to the third quarter, but the soft price pressures add to the narrative of the weakening inflationary backdrop, which will argue for caution at the Fed”, Reuters cites Millan Mulraine, deputy chief economist at TD Securities in New York.
Meanwhile, experts believe that in perspective spending will be solid as well, due to increasing wages and rising house prices.
