Inflation has begun to show signs of slowing down and according to the latest figures from the Department of Commerce U.S. retail sales up 0.4% in April which means that Americans have increased their spending.
While the current numbers are below Refinitiv economists’ projections of 0.8% growth last month, according to Robert Frick, corporate economist at the Federal Navy Credit Union, “lAmericans spent steadily in April across the board. and the mixture kept falling away from items like electronics and furniture that can be spent in bars and restaurants,” he said.
The increase in consumption is due to several factors, including the cessation of Covid-19 and the decline in inflation, although the latter has been slow, it has shown signs that the policy promoted by the Federal Reserve with increasing interest rates is slowly paying off.
According to the report, US consumers were not spending money on very expensive products and items, instead they were spending their money on restaurants and bars, and gasoline sales were also shown to be down 0.8%.
However, Texas-based Comerica Bank chief economist Bill Adams noted that “consumer spending is likely to be a brake on economic growth in 2023at the same time, the volumes of purchases of goods are practically fixed, and the costs of services are growing more slowly than in 2022 or 2021,” he said.
Source: La Opinion
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