Durable Goods Consumer Spending Booms in November
(Positive) Real consumer spending in October 2016 was $11,603 billion real dollars (seasonally adjusted at an annual rate). This was all-time high in consumer spending. The month-over-month rate of growth in consumer spending was 2.8 percent. The current rate of growth has been below the historic average of 3.3 percent since July 2015. The annual rate of growth remained at 2.6 percent, which was the slowest rate of annual growth since October 2014. The growth rate has decelerated since July 2015.
In September, durable goods spending grew 11.8 percent, which was more than double the historic average. That was the third time in four months that the rate of month-over-month growth was above average. Durable goods spending accounted for 14.6 percent of all consumer spending in November. This was easily the highest percentage for durable goods spending ever. The annual rate of growth, now 5.7 percent, accelerated for the first time since July 2015 and was the fastest rate of growth since March 2016.
Below are key spending categories that lead the most important manufacturing new orders and production indices.
Accelerating Growth: appliances, durable goods, electornics, food/beverage, motor vehicles/parts, pleasure boats
Decelerating Growth: air transportation services, total consumer, medical care, other non-durable goods, clothing/footwearblog comments powered by Disqus