Durable Goods Consumer Spending Growth Moderates

(Neutral) Real consumer durable goods spending in June was $1,672 billion real dollars (seasonally adjusted at an annual rate). Compared with one year ago, durable goods spending increased 5.3 percent, which was the slowest rate of growth since August 2016. This was also the first month of below average growth since August 2016. The annual rate of growth was unchanged from last and appeared to have hits its peak rate of growth. 

Real consumer spending was $11,850 billion real dollars (seasonally adjusted at an annual rate). The month-over-month rate of growth in consumer spending was 2.4 percent, which was the slowest rate of growth since March 2016. The current rate of growth has been below the historic average of 3.3 percent since July 2015. The annual rate of growth remained at 2.8 percent for the fourth time in five months. Almost miraculously, the annual rate of growth has been between 2.7 and 2.9 percent since July 2016.

Below are key spending categories that lead the most important manufacturing new orders and production indices.

Accelerating Growth: durable goods, motor vehicles/parts, pleasure boats, total consumer

Decelerating Growth: air transportation services, appliances, clothing/footwear, electronics, food/beverage, medical care, other non-durable goods