Financial Expenses | Weekly Statement

Week of July 4 to 8

Consumer financial expenditures, a metric presented by the Bureau of Economic Analysis of the U.S. Department of Commerce, measures the size of the portion of people's money that is used for consumption of both goods and services on a recurring basis.

For May, financial expenditures for consumption of goods decreased 1.6% but for services increased 0.3%. The personal consumption finance expense index increased 0.6% overall but, excluding food and energy, the personal consumption finance expense index increased 0.3%.

For the month of May, personal disposable income increased 0.5% and personal consumption expenditures increased 0.2%.

What can be concluded from the above data is that despite an increase in personal income from wage adjustments, much of consumers' money is going towards the purchase of food and energy, the latter including fuel and electricity, two products currently heavily impacted by both the geopolitical environment and inflation.

After making financial expenditures for consumption, the personal savings rate (which is personal savings as a percentage of personal disposable income) was only 5.4%, indicating very tight budgets for the average consumer, and that a continuation of inflation is unlikely to find room in portfolios.

A step towards the inclusion of cryptoassets in traditional and auditable financial institutions:

Bill S. 4356, referred to as the "Lummis-Gillibrand Responsible Financial Innovation Act," was introduced in Congress as an initiative to advance the use of cryptographic technology in finance.