Economic News Blog
Posted by: Steven Kline, Jr. 7. November 2012

Durable Goods Spending Grows 8.2%

 According to the Bureau of Economic Analysis, real consumer durable goods spending in September 2012 was $1.381 billion (seasonally adjusted at an annual rate). This marks another new all-time high in real consumer durable goods spending. Compared to September 2001, spending in September 2012 was 8.2% higher, which is well above the historical average of 5.7% for month-over-month growth. With recent acceleration in month-over-month growth rates, the annual rate of change in spending has improved for the fifth consecutive month to 6.8%. This is a very strong rate of growth historically.

Real consumer durable goods spending is an important leading indicator for durable goods manufacturers and the suppliers to those manufacturers. Based on trends in incomes and household debt flow, both of which are good leading indicators for consumer durable goods spending, spending should continue to accelerate into 2013. This is a very positive sign for durable goods manufacturers because spending leads durable goods production by 0-6 months.

 

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