US – Three Charts on Consumption Expenditures – A complement

As I was at the airport yesterday to write my last post on US consumption (here), I wasn’t able to add charts. This post is just an addendum with three graphs on consumers’ behavior.
As I mentioned here, it is important to highlight this behavior as the GDP downward revision came mainly from households’ consumption (see here my post on GDP revision)
The first chart shows the quarterly change of consumption expenditures. For the second quarter, this year, this is carry over growth at the end of May. Continue reading

In May, US households consumption dropped

In May, US households consumption dropped by -0.1% after -0.2% in April. Carry over growth for the second quarter is just 1.2% at the end of May. This figure must be compared to the meager 1% of the first quarter (with a contribution of 0.7% to GDP quarterly growth). Yesterday I mentioned that May figures would be important after the downward revision of Q1 GDP growth (see my post this morning)
Technically consumption growth could be positive for the second quarter but if the momentum seen in April and May is still there in June then Q3 consumption growth could be close to 0.(*) Continue reading