According to DOC, the increase came in a context of severe interest rate hikes by the Federal Reserve (FED), as part of its “crusade” against inflation.
DOC estimated this US financial scenario could, in turn, decelerate Americans´ demand and contain an economic rebound.
Americans boosted their spending at stores and for services such as haircuts by 0.4% in August, after it fell 0.2% in July, the Commerce Department said Friday.
High Frequency Economics chief economist Rubeela Farooqi highlighted these data pointed to a loss of momentum in household spending.
Farooqi emphasized that with further Fed rate hikes in the offing, the risks to both consumption and economic growth are quite low.
The Fed last week raised the interest rate 75% and signaled there will be major increases in 2022.