Tag: savings rate

Modest Growth in Personal Income and Spending in July

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. (continue reading…)

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Personal Spending Growth Eased Somewhat in June

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. (continue reading…)

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Personal Spending Picked Up Strongly in May

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. (continue reading…)

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Personal Spending was Flat in April

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. (continue reading…)

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Monday Economic Report – May 4, 2015

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

The U.S. economy stagnated in the first quarter, with real GDP growing by just 0.2 percent. This compares to a consensus estimate of 1.1 percent, and it was lower than the 5.0 percent and 2.2 percent growth rates observed in the third and fourth quarters of 2014, respectively. As one might expect from a data point that is just shy of zero, the underlying contributions to growth were mixed. Net exports and government spending were drags on activity in the first quarter, particularly with headwinds from a stronger dollar. Consumer spending on goods and nonresidential fixed investment were also weak, with the latter experiencing sharp declines stemming from the energy market and its supply chain. The bright spots—to the extent that you could call them that—were service-sector spending and a rebound in inventories. (continue reading…)

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

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. (continue reading…)

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Personal Spending Fell in January for the Second Straight Month

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. (continue reading…)

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Personal Spending Fell in December

The Bureau of Economic Analysis said that personal spending fell 0.3 percent in December, the first decline in consumer activity since January. In so doing, the year ended as it begun, with softer personal spending. January’s decline was lower, however, because of winter conditions; whereas, the decrease in December appears to be due to lingering caution. Consumer purchases of durable and nondurable goods were off 1.2 percent and 1.3 percent, respectively.

The surprising part of this data is that the decline in personal spending in December came at a time when consumer confidence and personal income growth were both moving higher, but perhaps that signals better spending data in the months ahead. On the positive side, personal spending rose 3.6 percent in 2014, which was decent pace overall. (continue reading…)

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Personal Income and Spending Both Rose 0.2 Percent in October

The Bureau of Economic Analysis said that personal spending rose 0.2 percent in October, an improvement from being flat in September. This was slower than the 0.5 percent growth observed in August, however. Indeed, we have seen the year-over-year rate of spending growth fall from 4.2 percent in August to 3.6 percent in October. Still, this is a decent figure, indicating modest growth in consumer purchasing. In October, the increased spending occurred primarily with nondurable goods (up 0.2 percent) and services (up 0.3 percent). Durable goods orders (down 0.2 percent) fell for the second straight month. (continue reading…)

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Personal Spending Was Cautious in the Third Quarter, with Declines in September

The Bureau of Economic Analysis said that personal spending declined 0.2 percent in September, somewhat offsetting the 0.5 percent gain observed in August. Third quarter spending on consumer goods and services will go down as the slowest since the second quarter of 2012, up 1.5 percent at the annual rate. This suggests that Americans were more cautious in their spending behavior in the quarter than we might have preferred. In September, durable goods spending fell 2.0 percent in September, essentially counterbalancing the 2.1 percent gain of August. Weaker auto sales were likely behind the September decline. Nondurable goods purchases decreased for the second straight month, down 0.4 percent and 0.3 percent, respectively, in August and September. (continue reading…)

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