Consumer Confidence slipped slightly in April, at 69.2, 3 points below the 3-year high of 72 reached in February 2011.  The present situation index increased by over a point, while the expectations index fell by almost the same amount.  Although the economic recovery has been in progress for many months, it remains slower than many would like, and the slow-to-recover job market, sluggish income growth and volatile financial markets have many people … [Read more...]

Consumers continued to increase ever so slightly their use of credit cards in February. Revolving credit rose an adjusted .7%, to $799 billion, the fourth increase in four months.  Consumers have apparently had enough of "deleveraging" -- the paying down of debt that was has taken place over the last four years. However, the slow pace at which they are adding on debt indicates it is unlikely they will rack up charges as quickly as they did before the recession. Revolving credit … [Read more...]

Inflation slowed in March for all goods and services, but surged for apparel, driven by increases in childrenswear. Consumer prices rose 2.7% overall in March compared to the same month last year, down slightly from February's increase and a continuation of the slow, steady drop since September 2011, when prices increased by 3.9% year-on-year. The core inflation rate, which excludes food and energy, was up by only 2.3%, a bit higher than January's increase, as prices of nondiscretionary … [Read more...]

Personal consumption expenditure growth slowed in February for the fourth straight month, according to recently-released US government data. Spending rose by 4.4% on a 12-month smoothed basis, below January's rate of 4.5%. Most of the slowdown was in the purchases of durable and nondurable goods, helped by a slight drop in the February consumer price index.  Spending on services actually increased in February.    Apparel spending continues to outpace the rate of overall … [Read more...]

Sluggish income growth continued in February, according to data released by the U.S. Bureau of Economic Analysis. Adjusted disposable personal income increased by 3.1%, the lowest monthly rate in almost two years, and lower than January's revised estimate of a 3.5% increase.   Revised data also showed that the personal savings rate dipped to 3.7% from 4.3% last month, as personal savings plunged from $509 billion to $439 billion.  Consumer Spending remained stable in February, … [Read more...]

After a nice spike in February, overall Consumer Confidence dropped back in March, and now stands at 70.2, a point below last month and 2 points below the 3-year high of 72 reached in February 2011.  The present situation index increased by almost 5 points, while the expectations index dipped 5 points.  The economic recovery has been slower than many would like, and the sluggish job market has many people frustrated, as do rising interest rates (which might put a damper on housing … [Read more...]

Consumer prices rose 2.9% overall in February compared to the same month last year, level with January's increase. The core inflation rate, which excludes food and energy, was up 2.2%, a bit less than January's rise. Despite the fact that oil and fuel prices rose considerably in the month, declines in other categories, like food and apparel, are offsetting the impact.    After increasing a 4.7% in January, apparel prices softened a bit in February, rising only 4.2% in the most … [Read more...]

Personal consumption expenditure growth slowed again in January compared to that of each of the prior 8 months. Spending rose by 4.5% on a 12-month smoothed basis, below December's rate of 4.6%. Some of this slowdown is due to a slight drop in January consumer prices - commodity price reductions helping non-discretionary goods and intense price promotions for discretionary goods allowed consumers to spend less during the month. However, growth rates remain high relatively to the very … [Read more...]

Consumers continued to increase ever so slightly their use of credit cards in January. Revolving credit rose an adjusted .8%, to $801 billion, the third increase in 3 months and the biggest month-on-month jump in just over 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 … [Read more...]