Consumer Spending Grows Faster than 3% for Second Month
Real consumer spending in February 2015 was $11,158 billion real dollars (seasonally adjusted at an annual rate). The month-over-month rate of growth in consumer spending was 3.0%. This was the second month in a row with growth of at least 3.0%. The last time that happened was January-February 2011. The annual rate of change is now 2.7%, which is the fastest rate of growth since August 2007.
Real consumer durable goods spending is on a tear in recent months. In February, durable good spending increased 7.6% compared with last February. This was well aove the historical average growth rate. The annual rate of change made a significant jump to 7.9% in February. That's the fastest rate of annual growth since December 2004. This is very positive for future durable goods manufacturing production.
Real consumer spending (or its sub-components such as medical care spending) is an important leading for a number of durable goods end markets: construction materials; custom processors; durable goods; food/beverage processing; forming/fabricating (non-auto); hardware; HVAC; industrial motors/hydraulics/mechanical components; machinery/equipment manufacturing; medical; metalcutting job shops; oil/gas field/mining machinery; power generation; primary metals; and printing.
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