Tag Archives: Consumer spending

The economy added 175,000 jobs in May, and the unemployment rate ticked up to 7.6.percent, the first month-over-month increase since January, the Bureau of Labor Statistics (BLS) reported Friday.

Household net worth jumped by $3 trillion in the first quarter as real estate values grew $836 billion, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. With a drop in mortgage debt, owners' equity in real estate increased a sharp 2.5 percentage points to its highest level since 2007. Owners' equity as a percentage of real estate value has been on a steady upward trajectory since dropping to 36.3 percent in the first quarter of 2009.

The nation's economy grew at a "modest to moderate pace" from early April through the end of May, the Federal Reserve said Wednesday in its periodic Beige Book. The report cited growing strength in the housing and residential construction sector and the impact on the broader economy, with residential real estate and construction activity increasing "at a moderate to strong pace in all Districts." In addition, "overall bank lending improved modestly since the previous report."

Consumers in the latest Thomson Reuters/University of Michigan survey reported their most improved financial situation in more than five years, according to Surveys of Consumers. The group's Consumer Sentiment Index rose to 84.5 in May, its highest level since July 2007 and an improvement over the preliminary reading of 83.7. April's index reading was 76.4; May 2012's reading was 79.3. The survey comes only days after the Conference Board's latest index, which showed consumer confidence climbing to a five-year high in May.

Restrained by drops in farm income and sequester-driven cuts in government programs, personal income slipped $5.6 billion in April, while personal consumption spending dropped $20.5 billion, the Bureau of Economic Analysis reported Friday.

The nation's economy grew at a seasonally adjusted annual rate of 2.4 percent in the first quarter, slightly slower than originally reported, the Bureau of Economic Analysis (BEA) said Thursday. At the same time, BEA said corporate profits in the first quarter were $1.97 trillion, down almost $44 billion from the fourth quarter. The last time corporate profits showed a quarter-over-quarter decline was in the first quarter of 2012. Corporate profits are considered a key indicator of employment trends.

The Conference Board's Consumer Confidence Index continued to improve in May as Americans recovered from the economic shocks that plagued the year's first few months. "Consumer Confidence posted another gain this month and is now at a five-year high," said Lynn Franco, director of economic indicators at the Conference Board. "Consumers' assessment of current business and labor-market conditions was more positive and they were considerably more upbeat about future economic and job prospects."

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent (0.7 point) for the week ending May 16, a significant climb from last week.

Driven by stronger auto sales (but held back by falling gasoline prices), total retail sales increased an unexpected 0.1 percent in April, the Census Bureau reported Monday. Economists had expected sales to fall 0.3 percent. Sales at building material and supply stores jumped $389 million for the month, a 1.5 percent increase--the largest month-over-month increase since September. Sales at furniture and home furnishings stores were flat to March. Those two retail categories have a direct relationship to home sales.

When the Federal Open Market Committee completed its two-day meeting at the beginning of May, it issued the usual six-paragraph post-meeting statement.