Consumer prices rose 2.9% overall in January, below both November's and December's increases. The core inflation rate, which excludes food and energy, was up 2.3%, a bit higher than December's rise. Despite the fact that higher oil prices are impacting the consumer pocketbook, other items, like apparel, are having an even bigger impact.  Prices for apparel ticked up a whopping 4.7% in January, outpacing overall inflation for the sixth month in a row. Over the last few months, apparel … [Read more...]

Consumers used their credit cards more freely in December. Revolving credit rose an adjusted .1%, to $801 billion, the second increase in 2 months and the biggest month-on-month jump in almost three years.  Consumers have apparently had enough of "deleveraging" -- the paying down of debt that was taking place during the Great Recession. The question is, will they "re-leverage," and start racking up charges the way they did before the economic downturn? We feel this is … [Read more...]

Consumer confidence fell in January, and now stands at 61.1, almost 4 points below December's level, but still its second highest level in eight months. The present situation index fell by 8 points, much more than the expectations index, which fell by less than one point. Have consumers lost their faith? It is more likely, given the contast in view between present and future expectations, that they feel the recovery is proceeding too slowly, and that although they think things will get … [Read more...]

Total consumer spending rose 4.6% in December, slightly below November's 4.7% rise, no doubt constrained by another monthly drop in disposable income growth.  Although the growth gap between overall spending and apparel has been narrowing in recent months, apparel spending growth outpaced that of overall spending for the 20th month in a row. In December, apparel and footwear increased slightly their "share of wallet" - or percentage of total consumer spending, evidence of the fact that … [Read more...]

Sluggish income growth continued in December, according to U.S. government data. Adjusted disposable personal income increased by just 2.3%, below both October's and November's rates. This decline in income occured simultaneously with a slowdown in spending, which rose by 4.6% on a 12-month smoothed basis, below November's rate of 4.7%. Some of this slowdown is due to a drop in consumer prices - commodity price reductions helping non-discretionary goods and intense price … [Read more...]

Consumer prices rose 3% overall in December, well below November's 3.4% jump. The core inflation rate, which excludes food and energy, was up 2.2%, even with November. So as food and energy prices declined, prices of other goods remained fairly steady compared to last month, though they've risen in recent months.     Apparel prices rose by 4.6%, less than last month's 4.8% rise but more than the overall CPI. Many large retailers have reported an increase in average unit … [Read more...]

Consumers pulled out the plastic to take advantage of all those Black Friday deals, as revolving consumer credit growth edged into positive territory in November for the first time in almost three years -- since January of 2009. After 33 months of paying down, paying off and refusing to use (or being unable to get) credit cards, consumers finally started to increase their use of plastic again. Whether that's a good thing, or even whether it's a trend or just a temporary blip, will become … [Read more...]

Consumer confidence surged again in December, and now stands at 64.2, its highest level in eight months. Both the present situation and expectations portions of the index rose. Improvements in the job market, housing sector and corporate earnings have more than offset the volatile stock market and European economic woes. It may be too soon to tell whether this improvement is real and sustainable or just a temporary situation, however.   … [Read more...]

Sluggish income growth hampered consumer spending and saving in November, according to U.S. government data. Adjusted disposable personal income increased by 2.4%, below October's 2.6% rise and trending under recent monthly increases, causing consumers to put the brakes on spending, which rose by 4.3% overall compared to last November, below October's 4.6% year-over-year increase. The personal savings rate dropped to 3.4% from 3.5% last month, and trails the high savings rates seen over … [Read more...]

Total consumer spending rose 4.7% in November, slightly below October's 4.8% rise, and probably depressed by a slight softening in personal income growth in the period. After steadily accelerating for several months, spending growth on apparel and footwear rose by a slightly lower 5.0% on a 12-month smoothed basis, with much of the difference due to slower spending on adult apparel. Apparel prices rose by a more-than-expected 4.8% in the month, higher than the overall inflation rate. For … [Read more...]