Tag

personal spending

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.
Read More

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

By | General | No Comments

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

By | General | No Comments

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

By | Economy | No Comments

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

Monday Economic Report – June 29, 2015

By | Economy, General | No Comments

Here is the summary for this week’s Monday Economic Report:

Last week, there were several reminders that the manufacturing sector has not recovered fully from economic weaknesses earlier in the year, even as business leaders remain cautiously optimistic about activity in the coming months. Durable goods orders declined 1.8 percent in May, extending April’s 1.5 percent decrease. Much of this softness stemmed from reduced aircraft sales, with orders excluding transportation modestly higher. Nonetheless, durable goods demand has been quite weak for much of the past year. On the positive side, we would expect stronger durable goods orders in the June data, with the recent Paris Air Show lifting aircraft sales, and the broader measure, which excludes transportation, has edged marginally higher over the past three months. We hope that this is the start of a rebound. Read More

Personal Spending Picked Up Strongly in May

By | Economy | No Comments

The Bureau of Economic Analysis said that personal spending rose 0.9 percent in May, rebounding from a more-cautious 0.1 percent growth rate observed in April. It was the fastest monthly growth rate since August 2009. From the manufacturing perspective, this was welcome news, with spending on durable and nondurable goods up 2.2 percent and 1.9 percent, respectively. More importantly, it provides some encouragement that Americans might return to opening their wallets – something that there has been more hesitance to do so far this year. The year-over-year rate of personal spending in May, 3.6 percent, was the highest since December, up from 3.1 percent since in April. Read More

Monday Economic Report – June 8, 2015

By | Economy | No Comments

Here is the summary for this week’s Monday Economic Report: 

The Federal Reserve’s Beige Book reported that the economy expanded modestly in its recent assessment. More importantly, it said that activity for manufacturers “held steady or increased over the reporting period” in all of its regions except for the Dallas and Kansas City districts. Those two regions have been rocked by lower crude oil prices and sluggish export growth in particular. Yet, beyond those challenges, the Federal Reserve noted some improvements in retail spending (especially for motor vehicles), housing and employment. Despite this mostly upbeat economic analysis, the Federal Reserve is keenly aware of the challenges that exist in the marketplace, as noted in the minutes of the most recent Federal Open Market Committee meeting. Indeed, data released last week continue to reflect a softer-than-desired level of activity in many areas, even as manufacturers might remain cautiously optimistic about the future and some of the measures rebounded somewhat. Read More