Real Consumer Spending Increases 2.2% - Strongest Growth Since July 2011
According to the Bureau of Economic Analysis, real consumer spending in March 2013 was $9,771 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 March. Spending in March 2013 was 2.2% more than it was in March 2012, which is the fastest rate of growth since July 2011. The annual rate of growth, 1.9%, has been flat since April 2012. The recent acceleration in growth in real personal incomes is indicating that we should see a further increase in the rate of growth in real consumer spending. This should push the annual rate of growth in real consumer spending to 2.0-2.5%. This is a positive sign for the prospects of durable goods manufacturing.
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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