Consumer sentiment in March dropped to 63.4 from 67 as consumers’ confidence in the current economic conditions and their expectations both worsened on the month, according to the University of Michigan’s survey released Friday. The decline in sentiment, though, was not influenced by the ... READ MORE >
consumer spending
January’s spending shows a hot economy despite rate hikes
January’s data on inflation and spending came in hotter than expected on Friday, making the case that the Federal Reserve will need to raise interest rates three more times and bring its peak policy rate to 5.5%. Rising prices and spending indicated that overall demand remained robust, which ... READ MORE >
American consumers grow more cautious as spending falls
American consumers pulled back on their spending for the second month in a row in December amid a continuing economic slowdown and elevated inflation. Also contributing to the decline were weak income growth and the decreasing stock of excess savings. Spending fell by 0.2% in dollar terms and by 0.3% ... READ MORE >
Spending holds strong as inflation moderates in October
Overall demand remained robust as holiday shopping kicked off in October, according to data on inflation, spending and income from the Bureau of Economic Analysis released on Thursday. Spending rose by 0.8% while income increased by 0.7%. After adjusting for inflation, real spending rose by 0.5% ... READ MORE >
Consumer products holiday season insights: Thanksgiving holiday sees consumers continue to spend
Over the Thanksgiving weekend, consumers showed they are not yet ready to pull back on the robust spending that has driven economic activity over the last three years. Consumers equipped with $1.8 trillion of excess savings, compared with the first quarter in 2020 (approximately 80% held by the upper two ... READ MORE >
Retail sales surge, easing recession fears for now
Retail sales data surged in October as holiday shopping started early for the second year in a row. The strong month, which followed a flat month in September, suggested that, at least for now, a recession was not at hand. Sales grew by a stronger-than-expected 1.3% with broad-based increases. Nine of ... READ MORE >
Spending grows, even with higher-than-expected inflation
Despite a sharp drop in energy prices, August's personal consumption expenditures price index—the Federal Reserve's key gauge for inflation—rose by 0.3% after falling by 0.1% in July. The price increases ate into spending, bringing spending growth from a 0.4% increase in dollar terms to only a 0.1% ... READ MORE >
American spending and income eroded by multi-decade high inflation
American consumer spending barely kept up with price gains in June as the Federal Reserve's key inflation gauge—the Personal Consumption Expenditure price index—reached a new multi-decade high, according to government data released Friday. Additionally, personal income declined for the first time since ... READ MORE >
Consumer confidence sours but capital spending holds strong
The final estimate for consumer sentiment in February came in slightly higher than the advance estimate, rising to 62.8 from 61.7 previously, yet remaining at a decade low. Concerns over elevated inflation, rising interest rates and higher gas prices all took a toll on confidence, according to a new ... READ MORE >
U.S. consumers spend more in January, defying inflation
Personal spending rebounded in January even as inflation rose at the highest rate in decades. Consumers looked past the omicron surge to spend more for the first time in three months on an inflation-adjusted basis. Spending rose 2.1% on the month, and 1.5% after adjusted for price increases while the ... READ MORE >