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

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[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

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