Sentiment Fades, Spending Barely Rises: U.S. Economic Takeaways
- Household purchases soften as Americans boost savings
- Confidence at seven-month low on drop in economic expectations
Why Is There No Love for This Bull Market?
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What you need to know about Friday’s U.S. economic data:
The Takeaway: Americans remained hesitant about opening their wallets, opting instead to sock away income gains and wrapping up the weakest quarter for spending in a year. The March reading on outlays indicates a soft hand-off into the current quarter. The level of savings rose to $735.5 billion, the highest since December 2012. The tempering of purchases has surprised economists, given the combination of contained inflation, strong employment and low borrowing costs. Along with tepid consumer spending, the biggest part of the economy, the report showed inflation is running below the goal of Federal Reserve policy makers.