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personal income

personal spending

Personal Spending Slowed at Year’s End

By | Economy, Shopfloor Economics | No Comments

The Bureau of Economic Analysis said that personal spending slowed in December, up just 0.1 percent following a 0.5 percent increase in November. As such, it suggests that Americans pulled back their purchases at year’s end, mirroring other data showing soft retail sales. Indeed, durable and nondurable goods spending were both lower for the month, down 0.7 percent and 0.2 percent, respectively. Reduced motor vehicle sales (down 3.3 percent) pulled the durable goods figure lower. Service sector spending was up 0.3 percent. With that said, personal consumption expenditures have risen 3.2 percent over the past 12 months, a modest pace. This was down, however, from 4.0 percent one year ago. Read More

personal spending

Personal Spending Rebounded Somewhat in November, but Remained Softer-Than-Desired Overall

By | Economy, General, Shopfloor Economics, Shopfloor Main | No Comments

The Bureau of Economic Analysis said that personal spending increased 0.3 percent in November, rebounding from being unchanged in October. Indeed, spending on durable and nondurable goods items were both higher for the month, up 1.1 percent and 0.9 percent, respectively, which was encouraging. However, overall spending remained softer than desired, with a general sense that Americans are holding back in terms of their overall consumer purchases. The increases in goods spending in November followed two months of softness, and service-sector spending was unchanged for the second straight month. Moreover, personal consumption expenditures have risen 2.9 percent over the past 12 months. While this represents modest growth in personal spending year-over-year, this pace has decelerated over the course of this year. For instance, the year-over-year rate was 4.4 percent one year ago.
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The Savings Rate Rose to a Nearly Three-Year High

By | General, Shopfloor Economics | No Comments

The Bureau of Economic Analysis said that personal spending remained soft, up 0.1 percent in October, the same pace as seen in September. Spending on durable and nondurable goods increased by 0.2 percent and 0.1 percent, respectively, but these data were held back by weaker spending on food and beverages (down 0.8 percent), motor vehicles and parts (down 0.7 percent) and gasoline and other energy goods (down 0.3 percent). The latter was likely the result of lower gasoline prices. Overall, these data tend to show that Americans are holding back a little on their consumer purchases, with the year-over-year pace of personal spending down from 4.7 percent in October 2014 to 2.9 percent in this most recent report. On the positive side, this suggests positive growth, and yet, these data also indicate that the public is saving more. The savings rate rose to 5.6 percent, its highest rate of the year so far and up from 4.5 percent twelve months ago. It was also the highest level since December 2012, when the data were skewed by the possibility of the “fiscal cliff.” Read More

Personal Income and Spending Growth Slowed in September

By | General, Shopfloor Economics | No Comments

The Bureau of Economic Analysis said that personal income growth slowed to 0.1 percent in September, down from 0.4 percent growth in each of the prior five months. As such, it was the slowest income growth since March. With that said, personal income growth has remained at fairly decent levels, up 4.1 percent year-over-year in September, but this was down from 5.2 percent in December. Total manufacturing wages and salaries declined from $797.7 billion in August to $792.8 billion in September. Nonetheless, the longer-term trend has been mainly positive for the sector, with manufacturing wages and salaries totaling $746.8 billion and $780.9 billion on average in 2013 and 2014, respectively. Read More

Modest Growth in Personal Income and Spending in August

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The Bureau of Economic Analysis said that personal spending increased by 0.4 percent in August, mirroring the gain seen in July. It has not been positive for six consecutive months, after essentially stagnating in February. Durable and nondurable goods spending were both higher for the month, up 1.2 percent and 0.6 percent, respectively. Motor vehicles and parts helped to buoy the durable goods purchasing numbers in each of the past two months, up 1.6 percent and 2.1 percent in July and August, respectively, and rebounding from the 3.4 percent decline in June. On a year-over-year basis, personal spending has increased by 3.5 percent, down from 3.7 percent in the prior report. In general, this suggests that Americans are increasing their spending modestly, but it also indicates a slower rate of purchasing than the more-robust pace seen in late 2014. For instance, the year-over-year rate peaked at 5.0 percent in 2014 in August. Read More

Modest Growth in Personal Income and Spending in July

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The Bureau of Economic Analysis said that personal income increased 0.4 percent, marking the fourth straight month with that pace. Over the course of the past 12 months, personal incomes have risen 4.3 percent, up from 4.1 percent in the last report. Total manufacturing wages and salaries were $793.2 billion in July, up from $788.5 billion in June. This continues an upward trend for the sector, with manufacturing wages and salaries totaling $746.8 billion and $780.9 billion on average in 2013 and 2014, respectively. Read More

Personal Spending Growth Eased Somewhat in June

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The Bureau of Economic Analysis said that personal spending increased by 0.2 percent in June, easing somewhat from the 0.7 percent growth rate observed in May. This was the slowest pace since February, but on the positive side, spending has now risen for five straight months. On a year-over-year basis, real personal consumption expenditures have risen 2.9 percent since June 2014, down from 3.4 percent in May. Through the first half of 2015, year-over-year growth in personal spending has averaged 3.2 percent, representing modest growth. Still, the June data were challenged by weaker-than-desired growth in goods spending, particularly for durable goods. Read More

Personal Spending was Flat in April

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The Bureau of Economic Analysis said that personal spending was flat in April, falling back after growing 0.5 percent in March. In general, we have seen softer purchase levels over the past six months, with the year-over-year pace of personal consumption falling from 4.3 percent in November to 2.8 percent in April. The good news is that this still represents a modest pace of growth. Yet, this softer-than-desired level of spending mirrors consumer anxieties about income and labor market growth, and it corresponds with weaknesses in the larger economy year-to-date. For manufacturers, this has translated into sluggish spending on goods, with durable and nondurable goods spending down 0.7 percent and 0.5 percent, respectively, in April. Read More

Personal Spending Picked Up a Little in March, but Income Growth was Flat

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The Bureau of Economic Analysis said that personal spending rose 0.4 percent in March. As such, consumer spending accelerated from February’s 0.2 percent gain and declines in December and January. From a manufacturing perspective, both durable and nondurable goods spending were higher in March, up 1.8 percent and 0.6 percent, respectively. While this is encouraging, particularly if it is the beginning of a rebound, these data also show just how weak consumer spending on goods has been in the first quarter, down 2.2 percent from the fourth quarter. Indeed, the year-over-year pace of personal spending growth has fallen from 4.3 percent in October to 3.0 percent in March. The good news is that this spill represents a modest pace of growth. Read More

Personal Spending Fell in January for the Second Straight Month

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The Bureau of Economic Analysis said that personal spending decreased by 0.2 percent in January, falling for the second straight month. Durable and nondurable goods spending were also lower in both December and January, and these data suggest that Americans remain cautious in their spending. Of course, there could also be other factors at play, such as lower gasoline prices and heavy snow storms in some regions of the country. Still, on a year-over-year basis, personal spending has increased 3.6 percent, a fairly decent growth rate. Read More