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personal income Archives - Shopfloor

Personal Spending Was Up Strongly in November, with Savings Rate Down to a 10-Year Low

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The Bureau of Economic Analysis said that personal spending was up strongly in November, up 0.6 percent. After increasing by just 0.2 percent in October, Americans accelerated their personal consumption expenditures in November, including a rebound in nondurable goods spending, up 1.2 percent. Durable goods spending was unchanged in the latest data. Overall, consumer spending has been one of the bright spots in the U.S. economy, with the public more willing to open their pocketbooks over the course of this year. Indeed, personal spending has increased 4.5 percent over the past 12 months, up from 4.2 percent in the previous release and the best year-over-year rate since April. In addition, goods spending for durable and nondurable goods were up 5.4 percent and 5.0 percent year-over-year, respectively.

Likewise, the savings rate has fallen to a 10-year low, down from 3.2 percent in October to 2.9 percent in November. This was a level not seen in the data since November 2007. It is yet another illustration that Americans have accelerated their purchasing—something that is likely to help boost overall holiday spending this year. Read More

Personal Spending Growth Was Modest in October, Extending the Robust Gain from September

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The Bureau of Economic Analysis said that personal spending rose modestly in October, up 0.3 percent. As such, the latest increase in personal consumption expenditures extended the robust 0.9 percent gain seen in September, which was the fastest monthly pace since August 2009. In October, the goods spending data were mixed, with nondurable goods purchases up by 0.2 percent but with durable goods outlays edging down by 0.1 percent. With that said, the longer-term picture remains favorable, as Americans have continued to spend at relatively healthy rates overall. Indeed, personal spending has increased 4.2 percent over the past 12 months, off slightly from 4.3 percent year-over-year in the previous release. In addition, goods spending for durable and nondurable goods were up 3.8 percent and 4.2 percent year-over-year, respectively.

Likewise, the savings rate has fallen from 4.1 percent in October 2016 to 3.2 percent in the current data, highlighting the degree to which Americans have become more willing to spend. At the same time, the savings rate did increase from 3.0 percent in September, largely on stronger income growth. Read More

Personal Spending Growth Jumped 1 Percent in September, Fastest Monthly Pace in Eight Years

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The Bureau of Economic Analysis reported that personal spending jumped 1.0 percent in September after edging up just 0.1 percent in August. It was the fastest monthly pace since August 2009, boosted by strong growth in durable and nondurable goods spending, up 3.2 percent and 1.5 percent in September, respectively. The durable goods figure was buoyed by a significant increase in motor vehicles and parts purchases, likely supported by hurricane-related replacements. In general, Americans have continued to spend at relatively healthy rates overall. Indeed, personal spending has increased 4.4 percent over the past 12 months, up from 4.0 percent year-over-year in the prior release.

The saving rate plummeted from 3.6 percent in August to 3.1 percent in September, its lowest level since December 2007, or since the start of the Great Recession. To put that figure in perspective, the saving rate was 4.5 percent one year ago.

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Personal Spending Growth Slowed in August

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The Bureau of Economic Analysis reported that personal spending increased 0.1 percent in August, slowing from a gain of 0.3 percent in July. Nondurable goods spending rose 0.3 percent for the month, but that was offset by a 1.1 percent decline in durable goods, especially for motor vehicles. Despite the mixed results in the latest data, Americans have continued to spend at relatively healthy rates overall. Indeed, personal spending has increased 3.9 percent over the past 12 months. Breaking that figure down, spending on durable and nondurable goods has risen 3.5 percent and 3.1 percent year-over-year, respectively. For its part, the saving rate was unchanged at 3.6 percent in August, and it continued to indicate accelerated spending, down from a saving rate of 4.9 percent one year ago. Read More

Personal Spending Picked Up in July

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The Bureau of Economic Analysis reported that personal spending rose 0.3 percent in July, extending the 0.2 percent gains in both May and June. (The June increase was revised up from an earlier estimate of 0.1 percent.) Durable and nondurable goods spending both increased in July. Since the spring, we have seen consumer spending pull back from robust growth, even as purchases continued to rise at a modest pace overall. In this report, personal spending increased 4.2 percent year-over-year, up from 4.1 percent in the prior release. To put that number in perspective, it was higher than the 3.8 percent year-over-year rate in July 2016 but off from the healthy 5.1 percent pace in March. Read More

Personal Spending Slowed in June, with Income Growth Flat

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The Bureau of Economic Analysis reported that personal spending inched up 0.1 percent in June, slowing from 0.2 percent growth in May. Personal consumption expenditures (PCEs) declined for both durable and nondurable goods, but service-sector spending increased.  We have seen spending pull back from more robust growth at the end of last year. To illustrate this shift, personal spending rose 2.9 percent at the annual rate in the first half of 2017, easing from the annualized 4.8 percent rate in the second half of 2016. On a year-over-year basis, personal spending has risen 3.8 percent.

Even with some easing, however, consumer purchases continue to expand at a decent clip. This can be seen in the saving rate data, which dropped to 3.8 percent in June. One year ago, the saving rate was 5.1 percent. This is a sign that Americans have accelerated their purchases in general over the past 12 months.

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Personal Spending Edged Higher in May, Slowing from Faster Gains in March and April

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The Bureau of Economic Analysis reported that personal spending edged higher in May, up 0.1 percent, after 0.4 percent gains in both March and April. In May, personal consumption expenditures (PCEs) were lower on reduced goods purchases, down 0.5 percent, but service-sector spending increased slightly, up 0.3 percent. We have seen spending pull back from more robust growth at the end of 2016, but this report suggests Americans have begun to open their pocketbooks once more, albeit still cautiously. PCEs have risen 4.2 percent over the past 12 months. One year ago, the year-over-year rate was 3.5 percent, illustrating the pickup in spending since then, and yet, the current year-over-year pace is down from 5.2 percent in March and 4.5 percent in April. Read More

Personal Spending Remained Flat in March

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The Bureau of Economic Analysis said that personal spending remained flat in March, slowing from more-robust purchasing at the end of 2016. Personal consumption expenditures were unchanged in both February and March, down from gains of 0.6 percent and 0.2 percent in December and January, respectively. These data suggest that Americans have once again become more cautious in their spending. To illustrate this point, personal spending grew 0.9 percent at the annual rate in the first quarter, decelerating sharply from the 5.6 percent annual pace seen in the fourth quarter. More than anything, that helps to explain the soft real GDP numbers for the first quarter of 2017, up just 0.7 percent. In addition, the savings rate has moved higher with weaker spending activity, up from 5.2 percent in December to 5.9 percent in March.

To be fair, we have seen improvements in personal spending over the longer term. For instance, personal consumption expenditures have risen 4.7 percent since March 2016. Moreover, the savings rate was also slightly higher one year ago at 6.2 percent. Read More

Personal Spending Slowed in January after the Strong Gains Seen in December

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The Bureau of Economic Analysis said that personal spending slowed in January after the strong gains in December. Personal consumption expenditures rose 0.2 percent in January, off from the more robust pace of 0.5 percent in December. In this latest report, weaker durable goods sales (down 0.3 percent), including motor vehicles, held back spending, whereas nondurable goods spending increased (up 1.0 percent). In general, Americans have been more willing to open their pocketbooks in recent months relative to a more cautious approach at this time last year. Along those lines, personal spending grew 4.7 percent year-over-year in January, its highest level since November 2014.

With the easing in spending, the savings rate edged higher, up from 5.4 percent in December to 5.5 percent in January. To illustrate the increased willingness to spend relative to one year ago, the savings rate was 6.2 percent in January 2016. Read More

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