Personal consumption expenditures (PCE) in the United States fell by 0.1% from the previous month to $21.441 trillion in May of 2025, following the 0.2% increase in the previous month, and contrasting with expectations of a 0.1% increase. It was the first contraction since January, suggesting that tariffs and economic uncertainty may have hampered consumer’s appetite. Spending fell sharply for goods (-0.1% vs 0.2% in April), amid a sharp decline in durable goods (-1.8% vs 0.4%) and a softer drop for non-durable goods (-0.2% vs 0%). In turn, spending in services rose at a softer pace (0.1% vs 0.2%).
