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
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
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.
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
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
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
The Bureau of Economic Analysis said that personal spending accelerated at year’s end, rising 0.5 percent in December. This was its fastest monthly pace since September, boosted by strong growth in durable goods purchasing, which were up 1.4 percent in December. In contrast, nondurable goods spending was slightly higher but essentially flat. In general, Americans have been more willing to open their pocketbooks in recent months relative to a more-cautious approach seen earlier last year. Along those lines, personal consumption expenditures grew 4.5 percent year-over-year in December, up from 2.9 percent in March and its highest level in two years.
With the pickup in spending, the savings rate edged lower, down from 5.6 percent in November to 5.4 percent in December. This was the lowest rate since March 2014, and it was down from 6.1 percent one year ago. Therefore, the savings rate remained consistent with the narrative of better spending data as the year progressed. Read More
The Bureau of Economic Analysis said that personal incomes rose 0.6 percent in October, its fastest monthly pace of growth since April. On a year-over-year basis, personal incomes have increased 3.9 percent, a 9-month high and definite progress from the 3.4 percent pace seen in August. At the same time, total manufacturing wages and salaries increased from $834.4 billion in September to $840.6 billion in October. Overall, manufacturing wages and salaries have trended in the right direction, up from the $780.0 billion and $806.7 billion averages of 2014 and 2015, respectively.
Meanwhile, personal spending increased 0.3 percent in October, rising for the second straight month but slowing from the 0.7 percent gain observed in September. Durable and nondurable goods purchases rose 1.0 percent and 1.4 percent, respectively, for the month. This included decent growth in spending for food and beverages purchased for the home, motor vehicles and parts and recreational goods and vehicles. In general, Americans have been more willing to open their pocketbooks in recent months relative to a more-cautious approach seen earlier in the year. Along those lines, personal consumption expenditures grew 4.2 percent year-over-year in October, up from 2.9 percent in March and its quickest pace since January 2015. Read More
The Bureau of Economic Analysis said that personal spending rebounded strongly, up 0.5 percent in September after falling by 0.1 percent in August. The healthy increase stemmed from a notable jump in durable goods sales, up 1.8 percent and essentially offsetting the 1.9 percent decline observed in the prior report. This included strong growth for motor vehicles and parts, recreational goods and vehicles and furnishings and durable household equipment. Overall, Americans have been more willing to open their pocketbooks in recent months relative to a more-cautious approach seen earlier in the year. Along those lines, personal consumption expenditures grew an annualized 3.0 percent in the third quarter, up sharply from just 1.2 percent in the first quarter, with year-over-year growth of 3.7 percent. Indeed, the personal savings rate has fallen from 6.2 percent in March to 5.7 percent in September. Read More
The Bureau of Economic Analysis said that personal spending increased by 0.3 percent in July, extending the 0.4 percent gain seen in June. More importantly, personal consumption expenditures rose for the fourth straight month. This suggests that Americans have begun to open their pocketbooks since the spring after being more cautious in their spending earlier in the year. Indeed, over the past 12 months, personal spending has increased by 3.8 percent, a healthy pace that makes consumption one of the bright spots in the economy. The savings rate edged slightly higher, up from 5.5 percent in June to 5.7 percent in July. Nonetheless, these data have largely been consistent with the recent pickup in spending, with the savings rate dropping from 6.1 percent in the first quarter of 2016 to 5.7 percent over the past four months. Read More