Consumer Spending on the Rise While Savings Rate Declines
9/13/2017 10:00 AM
The Federal Reserve Bank of New York monthly U.S. Economy in a Snapshot report shows a steady overall decline in consumers’ personal saving rate.
Consumer spending increased in July after little change in June, according to the latest U.S. Economy in a Snapshot report from The Federal Reserve Bank of New York.
“Real personal consumption expenditures posted a solid gain in July indicating consumer spending growth could be maintained in the third quarter,” according to the report.
The expenditures increased by 0.2 percent in July, and the results for June were revised upward from no change to an equal increase of 0.2 percent.
Consumers’ personal saving rate, however, has been on a steady decline since its peak of 4.1 percent in February this year. In July, the rate declined to 3.4 percent compared to 3.6 percent in June.
The Fed also reports real disposable personal income increased by 0.2 percent in July after being flat in June.
“The increase reflects gains in employee compensation, personal interest and dividend income,” according to the report.
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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