Here is a detailed article based on the JETRO news release, presented in a polite tone:
U.S. Personal Consumption Expenditures in June: Inflation Continues Upward, While Declining Real Disposable Income Growth Dampens Spending
Tokyo, Japan – August 1, 2025 – A recent report published by the Japan External Trade Organization (JETRO) on August 1, 2025, titled “June U.S. Personal Consumption Expenditures, Prices Continue to Rise, Declining Real Disposable Income Growth Suppresses Consumption,” provides valuable insights into the current state of the American economy. The data indicates a complex picture where continued price inflation is being met with a slowdown in the growth of consumers’ purchasing power, leading to a noticeable restraint on spending.
The report highlights that in June, personal consumption expenditures, a key indicator of economic activity, experienced a mixed performance. While consumer spending itself showed some movement, the underlying economic currents suggest a cautious approach by households.
A significant factor influencing this trend is the persistent rise in prices. Inflationary pressures continue to affect the cost of goods and services for American consumers. This means that even if nominal spending increases, the actual volume of goods and services that can be purchased is being eroded, leading to a decrease in real purchasing power.
Further compounding this situation is the observed decline in the growth rate of real disposable income. Real disposable income, which represents the income households have available after taxes and adjusted for inflation, is crucial for understanding their capacity to spend. A slowdown in its growth suggests that households may be experiencing a reduced ability to increase their spending, even if they desire to. This could be due to a combination of factors, including wage growth not keeping pace with inflation, or a larger portion of income being allocated to essential expenses.
Consequently, this confluence of rising prices and slower real disposable income growth is acting as a dampening force on overall consumer spending. Consumers are likely becoming more discerning with their purchases, prioritizing essential items and potentially scaling back on discretionary spending. This trend can have broader implications for various sectors of the economy that rely heavily on consumer demand.
Businesses, both within the United States and those engaged in international trade with the U.S., will undoubtedly be closely monitoring these developments. The ability of American consumers to maintain robust spending levels is a vital component of global economic health. Understanding these nuances in consumption patterns and the underlying economic drivers is essential for strategic planning and navigating the current economic landscape.
JETRO’s timely release of this analysis offers critical information for businesses and policymakers seeking to comprehend the intricacies of the U.S. consumer market. The report underscores the importance of keeping a close watch on inflation trends and the real income of consumers to accurately forecast economic performance.
6月の米個人消費支出、物価は引き続き上昇、実質可処分所得の伸び低下が消費を抑制
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日本貿易振興機構 published ‘6月の米個人消費支出、物価は引き続き上昇、実質可処分所得の伸び低下が消費を抑制’ at 2025-08-01 06:45. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.