Some real increase in personal consumption expenditures in August (+1.2% annual rate), undoing the August decline. Overall personal spending levels remain strong.
Note PCE declines much less in slowdowns/recessions than business investment and housing.
Note PCE declines much less in slowdowns/recessions than business investment and housing.
Durable goods spending fell slightly after two previous months of gains. Remains highly elevated. At this point should probably start thinking of this as normal not a temporary side effect of the pandemic.
Services continued their steady rise. Ditto on thinking of this as the new normal.
Here is a table of all the major components of personal spending relative to trend.
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