Consumer spending jumps in December. So does inflation
Source: MarketWatch
Consumer spending jumps in December. So does inflation
Published: Jan 30, 2017 8:44 a.m. ET
PCE inflation gauge hits highest level in more than two years
By Jeffry Bartash
Reporter
jbartash@marketwatch.com
@jbartash
https://twitter.com/jbartash
WASHINGTON (MarketWatch) Americans spent more on new cars and other big-ticket items in December to finish the year on a optimistic note, though a key level of inflation hit the highest level in more than two years.
Consumer spending rose 0.5% last month, matching the estimate of economists polled by MarketWatch. Thats the biggest increase in spending in December since the last month of 2009, just as the U.S. began to emerge from the Great Recession.
Consumer spending is the biggest driver of the economy and is responsible for more than two-thirds of U.S. growth. ... The increase in spending outpaced the 0.3% gain in individual incomes, the Commerce Department reported Monday.*
As a result, the U.S. savings rate fell 0.2 percentage points to 5.4%, marking the lowest level since early 2014. ... Overall, consumer spending rose a solid 3.8% in 2016 after a 3.5% advance in 2015. ... The rise in inflation, however, exaggerated the increase in spending last year.
* https://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
Read more: http://www.marketwatch.com/story/consumer-spending-jumps-in-december-so-does-inflation-2017-01-30
Savor the nonpartisan data releases while you can. They won't last forever.
[div class"excerpt"]EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Monday, January 30, 2017
BEA 1704
* See the navigation bar at the right side of the news release text for links to data tables, contact personnel and their telephone numbers, and supplementary materials.
Technical: James Rankin (301) 278-9087 (Personal Income) piniwd@bea.gov
Harvey Davis (301) 278-9086 (PCE) pce@bea.gov
Media: Jeannine Aversa (301) 278-9003 jeannine.aversa@bea.gov
PERSONAL INCOME AND OUTLAYS, DECEMBER 2016
https://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
Personal income increased $50.2 billion (0.3 percent) in December according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $43.6 billion (0.3 percent) and personal consumption expenditures (PCE) increased $63.1 billion (0.5 percent).
Real DPI increased 0.1 percent in December and Real PCE increased 0.3 percent. The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
....
Next release: March 1, 2017 at 8:30 A.M. EST
Personal Income and Outlays: January 2017
Additional Information
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King_Klonopin
(1,307 posts)Inflation will continue to rise
The deficit and national debt will rise.
Interests rates will have to be increased.
New home purchases and mortgage markets will slump.
The stock market will retreat and go into a "bearish" cycle.
Middle class households will decrease discretionary spending and increase personal debt.
Fractured trade agreements will cause havoc.
A recession will ensue.
Small businesses will begin to suffer.
The unemployment rate will go up and new job creation will go down.
Large corporations will rake in profits until the stock market crashes 5,000 -
7,000 points and/or another financial crisis(es) happens.
The wealthy class will enrich themselves in the short term.
The working class will continue to make no gains in wealth accumulation
and they will be left to pay the national credit card bill -- AGAIN.
The democrats will be left to repair the damage done by conservative policies
that have been proven to be failures in the past.
Lather. Rinse. Repeat.