According to Jinshi Data reports, US consumer spending grew steadily in July, and core PCE warmed due to rising import tariffs. However, conditions in the labor market are softening, which may not prevent the Federal Reserve from lowering interest rates next month. Low layoff rates support wage growth and promote consumption.
President Trump imposed comprehensive tariffs on imported goods, increasing business costs, leading to corporate caution, and employers were reluctant to hire more staff. Government data shows that in the three months ending in July, employment increased by an average of 35,000 per month, compared to 123,000 in the same period of 2024.