December Consumer Spending Rises More Than Expected

holiday shopping

By Peter Hilton on flickr

Headline: Consumer spending rises 0.7%.Consensus: 0.5%, month-over-month increase

Other Statistics:

Personal income rise 0.4% (expectation was for a 0.4% month-over-month increase)

Core PCE price index unchanged (expectation was for a 0.1% month-over-month increase)

Analysis: People are spending more, incomes are remaining constant, and the savings rate is in decline. Prices are remaining unchanged, so inflation has yet to impact the market (outside of food and fuel of course).

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at