Real consumer spending increased at a faster rate in December 2016 compared to November, and the rate of overall growth in the fourth quarter was strong, according to the Federal Reserve Bank of New York’s latest U.S. Economy in a Snapshot report.
Consumers’ real disposable income increased 0.1 percent in December, after no change in November last year, according to the report.
The Fed also finds that real personal consumption expenditures increased 0.3 percent and the expenditures increased at a 2.5 percent annual rate in the fourth quarter.
While consumers’ spending grew in the third and fourth quarters of last year, their personal savings rate declined. The personal savings rate was 5.4 percent in December 2016, compared to 5.6 for the fourth quarter. The rate has been declining since the fourth quarter of 2015, according to the Fed.
U.S. Economy in a Snapshot, released monthly and launched in June 2015, is designed to provide a condensed, comprehensive overview of current economic and financial developments. It presents charts and commentary on a broad range of topics that include labor and financial markets, consumer behavior and the global economy.
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