According to Jin Shi data reports, U.S. consumer spending unexpectedly fell by 0.1% in May, while the market had expected a growth of 0.1%. After the surge in pre-shopping subsided, consumer spending nearly stagnated, with a decrease in service spending, and the quarterly growth of consumer spending was only 0.5%, the lowest since the second quarter of 2020.
Weak consumption and mild inflation are not enough to prompt the Federal Reserve to restart interest rate cuts in July. Economists point out that the current mild inflation is due to companies stocking up on inventory before tariffs take effect, and inflation is expected to rise starting from the June CPI data.