The recovery of the U.S. economic growth in the second quarter over the first quarter’s miserly growth pace relies mainly upon consumers. The U.S. consumer spending figures are set to be released next week. According to a Scotiabank research report, the headline consumer spending figure is expected to have risen decently, keeping up with the already known 0.4 percent sequential growth in retail sales for April.
However, about half of that was possibly because of higher prices given CPI. If real consumption just rose by around 0.2 percent sequentially in April, then it would be a quite lame beginning to the second quarter that would have tracking for consumption growth at slightly over 1 percent in annualized terms assuming flat figures in May and June to concentrate on the impacts of the first quarter hand-off and the beginning of second quarter data, added Scotiabank.