18 May 2015
US consumer spending expected to rebound – Danske Bank
FXStreet (Edinburgh) - Analyst at Danske Bank, assessed the recent figures from the US consumer spending.
Key Quotes
“We remain puzzled by the weakness in consumer spending”.
“Real incomes have been grew at a 4.0% q/q AR pace in Q1 but real personal spending increased by only 2.0%, pushing the savings rate higher”.
“Consumer sentiment remains high, job growth has held up and labour market indicators generally suggest that job growth continued at a decent pace in May”.
“Fundamentally, the current pace of consumption growth is too low in our view and thus we continue to expect a rebound”.
Key Quotes
“We remain puzzled by the weakness in consumer spending”.
“Real incomes have been grew at a 4.0% q/q AR pace in Q1 but real personal spending increased by only 2.0%, pushing the savings rate higher”.
“Consumer sentiment remains high, job growth has held up and labour market indicators generally suggest that job growth continued at a decent pace in May”.
“Fundamentally, the current pace of consumption growth is too low in our view and thus we continue to expect a rebound”.