Apparel Spending Sputters in Late 2016

Print Friendly, PDF & Email

Consumer spending has been rising faster than incomes, according to the most recent U.S. Department of Commerce data, but apparel has not benefitted from the increase.

Total personal disposable income rose by 3.7% in December to $14.8 trillion, compared to the same month in the prior year.

Personal consumption expenditures jumped by 4.5%, their biggest increase in nearly two years, due primarily to a sharp rise in durable goods consumption, though spending on services also increased significantly.

Spending has outpaced income in each of the last four months, as the improving employment situation and financial markets helped restore consumer confidence.

Consumer spending on apparel and footwear increased by less than 0.8% in December, capping three consecutive months of less than 1 percent gains. Footwear spending increased by 2.5%, while consumption of apparel rose by a paltry 0.3% in the month.

The personal savings rate, which hit a 12-month high of 6.2% in March and then drifted lower for most of the rest of the year, edged down slightly to 5.4% in December.


Recent News

Pakistan University Invents Disease-Resistant GM Cotton

Pakistan’s Punjab University has signed a memorandum of understanding to provide newly invented disease-resistant cotton seed to farmers in the country through seven multinational companies nationwide.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more