U.S. Economic News
May 31, 2019
U.S. Economic Indicators
Real disposable personal income increased 0.1% in April after falling 0.2% in March, while real personal consumption expenditure (PCE) was unchanged. The PCE price index increased 0.3% (up 1.5% Y/Y) and the core price index increased 0.2% (up 1.6% Y/Y) in April. BEA Report
The University of Michigan Consumer Sentiment Index rose 2.8 points to 100.0 in the final May reading and is up 2.0 points from last year. The Index of Consumer Expectations increased 6.1 points to 93.5, while the Current Economic Conditions Index fell 2.3 points to 110.0. University of Michigan
U.S. News
According to the Wall Street Journal, the U.S. has announced it will impose increasing tariffs, starting at 5%, on all Mexican exports to the U.S. beginning June 10 in an effort to pressure Mexico to deter the flow Central American migrants to the southern border. Business groups have expressed concerns that the tariffs will lead to retaliation against U.S. farm products and manufactured goods. WSJ
The Financial Times reports that an official measure of Chinese factory activity slowed to a ten-year low in May, suggesting that trade tensions and banking troubles will continue to drag down China’s economic growth. Experts expect Chinese policymakers to ease credit access for banks to promote lending to smaller companies, though the government’s recent bank takeover—the first in 18 years—is expected to tighten credit access in the short run. FT