The Bureau of Economic Analysis said that personal spending was up 0.4 percent in December, extending the robust 0.8 percent gain seen in November. Americans have continued to increase their purchasing, making personal consumption expenditures one of the bright spots in the U.S. economy. Over the past 12 months, personal spending has risen by 4.6 percent, off just slightly from the 4.7 percent pace observed in the prior report. In December, durable goods spending increased by 0.7 percent, but nondurable goods were off by 0.2 percent. On a year-over-year basis, goods spending for durable and nondurable goods were increased at very healthy rates, up 5.5 percent and 4.7 percent, respectively, since December 2016.
Likewise, the savings rate fell to its lowest rate since September 2005, down from 2.5 percent in November to 2.4 percent in December. The savings rate has trended lower since peaking at 4.1 percent in February. It is yet another illustration that Americans have accelerated their purchasing—something helped to boost holiday spending and provide a significant boost to real GDP growth in the fourth quarter. Read More
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
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.
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 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 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 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 0.4 percent in June, mirroring the growth rate seen in May. More importantly, personal consumption expenditures soared in the second quarter, up an annualized 7.5 percent versus the more-sluggish pace of just 1.2 percent in the first quarter. 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 3.7 percent, a healthy pace that makes consumption one of the bright spots in the economy. With a pickup in spending, the savings rate has dropped from 6.2 percent in March to 5.3 percent in June. These findings are consistent with the most recent real GDP estimates, with consumers being one of the few positive contributors to growth in an otherwise disappointing report. Read More