Economics
Economists Sour on US Outlook After Spending Stumbles
- May outlays fell and gains in prior months were revised lower
- Manufacturing surveys show contraction in business activity
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An influx of data showing softer consumer spending, sagging sentiment and subdued manufacturing suggest a US economy with a more fragile foundation, prompting several forecasters to lower their estimates for growth.
Notably, inflation-adjusted personal spending declined in May for the first time this year, and gains in each of the prior four months were revised down, indicating that demand earlier in the year was weaker than previously thought. Home sales and manufacturing surveys are also showing signs of trouble.