US Initial Jobless Claims Below Expectations While Consumer Spending Growth Slows in June

US Consumer Spending Growth Slows in June

US personal spending increased by $65.2 billion, or 0.3%, in June 2026 from the previous month, slowing from an upwardly revised 0.9% gain in May, largely due to a sharp decline in gasoline spending as lower crude oil prices followed peace negotiations between the US and Iran. Goods spending rose $7.0 billion, as a $48.1 billion drop in spending on gasoline and other energy goods was partly offset by higher outlays on motor vehicles and parts (up $17.4 billion) and recreational goods and vehicles (up $13.8 billion). Meanwhile, services spending increased $58.2 billion, driven by health care (up $22.8 billion), financial services and insurance (up $14.0 billion), transportation services (up $7.1 billion), and recreation services (up $6.7 billion). Meanwhile, inflation-adjusted consumer spending advanced 0.4% in June, the same pace as in the previous period.

US Initial Jobless Claims Below Expectations

The number of people claiming unemployment benefits in the US were at 197,000 on the week ending July 25th, rebounding by 9,000 from the 57-year low in the previous period but still under median expectations of 200,000. Continuing claims, which are seen as a gauge of outstanding unemployment in the US, fell by 7,000 to 1,782,000 in the earlier week, below expectations of 1,800,000 to mark the lowest in over one month. The data continued to reflect a strong labor market in the US, aligned with statements from FOMC members that see the US economy in full employment. Meanwhile, initial claims filed by federal employees, which have been under scrutiny due the administration’s efforts in decreasing the number of public workers, fell by 52 to 418.

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