Durable Goods Spending Accelerates in December

(Positive) Real consumer durable goods spending in December 2016 was $1,660 billion real dollars (seasonally adjusted at an annual rate). This was an all-time high in durable goods spending. Compared with one year ago, durable goods spending increased 8.1 percent, which was the second fastest rate of growth since January 2015. This was well above the historic average of 5.6 percent. The annual rate of growth accelerated for the third straight month. In December, it was 5.7 percent, which was the fastest rate of annual growth since March 2016. Durable goods spending was 14.2 percent of all consumer spending in December. This was the highest percent ever.

Real consumer spending was $11,672 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 2.7 percent, but the rate of growth has been 2.6 or 2.7 percent since May.  

Below are key spending categories that lead the most important manufacturing new orders and production indices.

Accelerating Growth: air transportation services, appliances, durable goods, electornics, food/beverage, motor vehicles/parts, pleasure boats, total consumer

Decelerating Growth: clothing/footwear, medical care, other non-durable goods, pleasure boats