Durable Goods Spending Growth Remained Strong

(Positive) Real consumer durable goods spending in April was $1,665 billion real dollars (seasonally adjusted at an annual rate). Compared with one year ago, durable goods spending increased 7.0 percent, which was eighth straight month and ninth month in the last 10 with above average growth. Each month was well above the historic average of 5.6 percent. However, this was the fifth straight month that the one-month rate of growth decelerated. The annual rate of growth accelerated for the seventh straight month, growing at its fastest rate since December 2015. 

Real consumer spending was $11,753 billion real dollars (seasonally adjusted at an annual rate). 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 dipped to 2.8 percent, but the rate of growth has been between 2.6 or 2.9 percent since March 2016.  

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

Accelerating Growth: air transportation services, durable goods, electronics, food/beverage, motor vehicles/parts, pleasure boats

Decelerating Growth: appliances, clothing/footwear, medical care, other non-durable goods, total consumer