August Consumer Spending Up just 2.6%

(Negative) Real consumer spending in August 2016 was $11,549 billion real dollars (seasonally adjusted at an annual rate). Unlike almost every other month, August 2016 was not an all-time high in consumer spending. The month-over-month rate of growth in consumer spending was 2.6 percent. The current rate of growth has been below the historic average of 3.3 percent since July 2015. The annual rate of growth decelerated to 2.7 percent, which was the slowest rate of annual growth since September 2014. The growth rate has decelerated since July 2015. 

In July, durable goods spending grew 5.1 percent. The rate of growth was below average after being above average last month. The annual rate of growth, now 5.2 percent, was the slowest since September 2010. It was below the historic average for the fourth consecutive month. 

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.