U.S. Personal Spending data was released today showing an unexpected drop for the month of June. This was the first drop in almost two years as consumers are concerned about jobs, causing them to hold back in spending.
American consumers dropped their spending by 0.2 percent in June despite economist predictions for a gain of 0.2 percent. May readings indicated spending rose by 0.1 percent.
A slowdown in income gains as well as sluggish job growth have failed to keep pace with inflation. Recent data indicated that the jobless rate climbed to 9.2 percent in June . This has made consumers less willing to spend their disposable income. Recent high gas prices have not helped.
Personal income data also released simultaneously show that incomes rose by 0.1 percent in June following a 0.2 percent gain the prior month that was revised down. Economists predictions were for incomes to rise by 0.2 percent
USDCAD fell from a session high of 0.9615 to 0.9585 within an hour of the news release.