Consumer Spending Up 1.7% in July 2013
According to the Bureau of Economic Analysis, real consumer spending in July 2013 was $10,710 billion real dollars (seasonally adjusted at an annual rate). As is the case almost every month, real consumer spending hit a new all-time high in July. Spending in July 2013 was 1.7% more than it was in July 2012. The month-over-month rate of growth decelerated to its slowest rate since August 2010. This is the third time in the last six months that the month-over-month rate of growth has fallen to this level. The annual rate of change, now 1.9%, fell below 2.0% for the first time since November 2010. Given that incomes continue to decelerate it is likely that spending will continue to decelerate throughout the remainder of 2013.
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; food and beverage processing; forming and fabricating (non-auto); hardware; HVAC; industrial motors, hydraulics and mechanical components; machinery and equipment manufacturing; medical; metalcutting job shops; oil, gas field and mining machinery; power generation; primary metals; and printing.
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