Consumers Stingy, Home Sales Rebound: U.S. Economic Takeaways

What you need to know about Monday’s U.S. economic data:


  • Spending rose 0.1 percent for third month after January outlays revised sharply lower from previously reported 0.5 percent gain
  • Inflation-adjusted spending climbed 0.2 percent after no change (previously reported up 0.4 percent)
  • Personal incomes increased 0.2 percent after 0.5 percent advance
  • Saving rate rose to one-year high of 5.4 percent from 5.3 percent

The Takeaway: Consumers remain stingy, taking their income gains and boosting the saving rate to its highest since February 2015. Inflation-adjusted spending on merchandise has declined in each of the last three months, the first time that’s happened in a year. The sum of all the parts: Plenty of Wall Street economists marked down estimates for first-quarter economic growth. Economists at Morgan Stanley moved their tracking estimate for gross domestic product to a 0.6 percent gain from 1 percent, while those at Macroeconomic Advisers took their forecast to 1 percent from 1.5 percent. The Atlanta Fed’s GDPNow estimate was lowered 0.6 percent, down from 1.4 percent. The economy expanded an annualized 1.4 percent in the fourth quarter.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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