Weak Consumer Spending and Manufacturing Data Push Shares Lower

globU.S. equities are trading lower on Monday following the release of data from the Bureau of Economic Analysis that revealed consumer spending rose just 0.2 percent in June while inflation continues to show weakness with core PCE prices, the Federal Reserve’s preferred inflation gauge, and expanded only 0.1 percent in June, excluding food and energy.

Personal Consumption Expenditures (PCE) increased $25.9 billion or 0.2 percent in June compared with an increase of $66.3 billion or 0.4 percent in May.

The June price index for PCE increased 0.3 percent from June 2014.

Excluding food and energy, the June price index increased 1.3 percent from June 2014.

Personal income rose 0.4 percent in May and June while wages and salaries increased 0.2 percent in June after increasing 0.4 percent in May.

On Monday manufacturing showed weakness in the U.S. with the ISM index falling to 52.7 percent in July, missing an earlier forecast of 54.1 percent from briefing.com and below June’s reading of 53.5 percent.

Today the Athens Stock Exchange has reopened and is down over 20 percent.

Greek factory output fell to a record low in July and financial shares have dropped by as much as 30 percent.

-Johnathan Schweitzer

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