US Economy Shows Further Signs of Slowing Under High Rates
- Thursday data show downward revision to 1Q personal spending
- Core capital goods orders, pending home sales dropped in May
A store in San Francisco, California. The government marked down personal spending by half a percentage point to an annualized 1.5% in the first quarter.
Photographer: David Paul Morris/BloombergWide-ranging economic data illustrates a downshift in US growth over the first half of the year tied to both the Federal Reserve’s higher-for-longer borrowing costs policy and sting of lingering inflation.
The government marked down personal spending — the main engine of the economy — by half a percentage point to an annualized 1.5% in the first quarter. Separate releases on Thursday showed declines in orders and shipments of certain business equipment, the widest trade deficit in two years, weakness in the job market and a slide in homebuying.