American consumer spending fell in December in the largest amount since 2009.Catherine Kinney (Author) Published Date : Feb 02, 2015 23:00 ET
According to a recent market data consumer spending in American households fell in December, which is the largest amount since 2009. According to a released data by Commerce Department household purchase declined 0.3 percent. This is the biggest decline since September 2009, after a promising figure of 0.5 percent rise in November 2014. The data also suggests that it fell more than the 0.2 percent forecast by the economists. According to the released data the personal income in the American household rose by 0.3 percent during the same time when spending fell. The economists are forecasting that the US economy will have a 3 percent growth this year.
It was also reported that the Stock-Index has gained after the data was released by the Commerce Department. The report also indicated that, Gross domestic product climbed at a 2.6 percent annual rate from October through December after a 5 percent pace in the third quarter . The economists are suggesting that, cheaper oil price and improved data from job sectors helped the consumption grow at 4.3 percent rate. The data also indicates that, spending on durable goods decreased 0.7 percent after adjusting for inflation.
The data also indicates that the demand for automobiles are on the high in 2014. The economists are suggesting that the high sales of light-weight cars was fueled by plummeting oil prices and cheapest gasoline prices. The plummeting oil prices is also making it difficult for the Federal Reserves to announce the timing of their first interest rate increase since 2006. In a recent statement the Central bank policy makers said, Activity has been expanding at a solid pace in a January 28 , which also stated that, Labor market conditions have improved further, with strong job gains and a lower unemployment rate . They also stated that, the central bank will be patient on the subject of raising the interest rate.
American consumer spending fell in December in the largest amount since 2009.