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US Consumer Spending Cools in Sign of Economy on Weaker Footing

  • May inflation-adjusted outlays drops 0.4% on goods decline
  • On annual basis, core inflation was lowest since November
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US Jobless Claims Fall. Consumer Spending Softens
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US consumer spending fell in May for the first time this year and prior months were revised lower, suggesting an economy on somewhat weaker footing than previously thought amid rapid inflation and Federal Reserve interest-rate hikes.

Purchases of goods and services, adjusted for changes in prices, decreased 0.4% after a downwardly revised 0.3% gain a month earlier, Commerce Department data showed Thursday. Spending on services advanced while outlays for goods declined.