US Personal Spending Grows 0.4% in December, Beating Estimates Despite Slower Pace
US personal spending increased 0.4% month-over-month in December, surpassing economist estimates of 0.3% and demonstrating continued consumer demand. Despite beating expectations, the growth rate slowed from the previous month's 0.5% expansion, indicating a moderation in spending pace while maintaining positive momentum.
*this image is generated using AI for illustrative purposes only.
US personal spending maintained its upward trajectory in December, recording a 0.4% month-over-month increase that surpassed economist forecasts while showing signs of moderation from the previous month's pace.
The December spending data exceeded analyst expectations, which had projected a 0.3% monthly increase. This positive surprise indicates that consumer demand remained robust during the final month of the year, supporting broader economic activity.
Spending Growth Comparison
| Period: | Growth Rate (MoM) |
|---|---|
| December (Actual): | 0.4% |
| Previous Month: | 0.5% |
| December (Estimate): | 0.3% |
Consumer Activity Trends
While December's personal spending growth beat expectations, the 0.4% increase represented a deceleration from the previous month's 0.5% expansion. This moderation suggests that consumer spending, while remaining positive, may be settling into a more sustainable growth pattern.
The spending data provides insights into consumer behavior and economic momentum, as personal consumption represents a significant component of overall economic activity. The December figure's performance relative to both estimates and prior month data offers a mixed but generally positive picture of consumer engagement.
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