U.S. Personal Spending Growth Moderates, While Price Index Rises
“U.S. personal spending growth moderated in July, reflecting a slowdown in outlays for merchandise, while a closely watched measure of inflation remained elevated. Purchases of goods and services rose 0.3% following a revised 1.1% increase in June, Commerce Department figures showed Friday. The personal consumption expenditures price gauge, which the Federal Reserve uses for its inflation target, climbed 0.4% from a month earlier and 4.2% from July 2020.”
New ECB Inflation Strategy Receives Mixed Grades From Markets
“Financial experts are split on whether the European Central Bank’s new strategy will help deliver faster inflation, according to a survey conducted by Germany’s ZEW institute. Nearly half of respondents said they raised their forecasts through 2023 by an average of 0.4 percentage point after the institution lifted its inflation goal to 2% and said it would accept a temporary overshoot to ensure price pressures become entrenched. Previously the ECB had aimed for a rate “below, but close to, 2%.”
Slowest Vaccine Drive Makes Japan G-7’s Worst Economic Performer
“It seems like Japan’s big recovery is always a quarter away. That dynamic is playing out again ahead of gross domestic product figures due Monday. Economists expect Japan to have just managed to eke out growth in the three months through June, but the more robust recovery they once saw for this summer now looks certain to be delayed. The slowest vaccine drive among the Group of Seven nations is a key reason. With infections rising to record levels in recent days and the government’s fourth state of emergency already extended to the end of August, the bounce in consumer spending that analysts had been forecasting will have to wait even longer.”
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