An improved public health outlook linked to mass vaccinations and a flood of fiscal aid coursing through the American economy boosted gross domestic product by 6.4% during the first three months of the year. The composition of growth was rock solid as American households increased spending by ... READ MORE >
consumer spending
How pandemic savings might have saved the day
An avalanche of spending is waiting to be unleashed by the American household. Add that to the expected investments by the corporate sector to improve productivity, and the result is a robust consensus forecast of 6.4% growth in gross domestic product – RSM predicts 7.5% – for this year. That number ... READ MORE >
CHART OF THE DAY: A shifting holiday spending calendar
Retailer expectations about the start of the holiday spending season appear to have shifted earlier. About half of the retailers surveyed by the National Retail Federation said they anticipated that consumers have already started their holiday spending in October, while 62% of retailers said they expected ... READ MORE >
Holiday sales to limp forward as pandemic weighs on economy
Holiday spending is likely to advance at a tepid 0.5% pace as households still reeling from the pandemic pull back on traditional and experiential holiday outlays. This forecast is optimistic compared to the 4.6% decline in 2008, the last holiday season that took place during a recession. And it is ... READ MORE >
CHART OF THE DAY: Glory days for used car salesmen
A confluence of trends linked to the pandemic – including the fleeing of millennials to the suburbs and a rising preference for private transportation – has driven the price of used automobiles up by the quickest monthly gain since 1969, according to data from the Bureau of Labor Statistics. While ... READ MORE >
US June personal income and spending: Difficult days for the American household
The American household finds itself under extreme duress as loss of income and jobs caused by the pandemic is on vivid display inside the June U.S. Personal Income and Spending Report. Despite a robust increase in spending, based on income dynamics that are in play during the pandemic, it is quite clear ... READ MORE >
April U.S. personal income and spending: Fiscal cliff approaches as income support remains key
With one in four American workers looking for employment or waiting to be recalled to work, there is little doubt that the weak spending environment will partially define the U.S. economic narrative and policy going forward. The Commerce Department’s report on Friday of a 10.5% increase in income, due to ... READ MORE >
Looking to 2020: Consumer is king amid slowing growth
The American economy will continue to slow toward a growth rate of 1.5% in 2020, below its long-term average of 1.8%, as sturdy consumer spending compensates for financial volatility and erratic trade policy. That consumption, though, increasingly depends on rising asset prices that help boost confidence, ... READ MORE >