US Consumer Spending Rises 0.5%

Personal spending in the United States went up 0.5 percent in December from November of 2016, following a 0.2 percent gain in the previous period. Figures came in line with market expectations, boosted by spending on durables, namely cars and services. Considering full 2016, personal consumption increased 3.8 percent after rising 3.5 percent in 2015.

Consumption recovered for durable goods (1.4 percent from -0.8 percent), rose slightly faster for nondurables (0.2 percent from 0.1 percent) and increased 0.4 percent for services (same as in November). 

Personal income went up 0.3 percent, higher than a 0.1 percent gain in November but below expectations of 0.4 percent. It primarily reflected increases in wages and salaries, personal current transfer receipts, and rental income of persons. 

Personal outlays increased $66.4 billion in December. Personal saving was $768.4 billion and the personal saving rate was 5.4 percent.

The PCE price index rose 0.2 percent from November after a 0.1 percent gain in the previous period. Excluding food and energy, the PCE price index edged up 0.1 percent after being flat. 

Considering full 2016, personal income rose 3.5 percent, slower than 4.4 percent in 2015. 

US Consumer Spending Rises 0.5%

BEA | Joana Taborda |
1/30/2017 1:55:31 PM