Consumer Spending and Sectoral Insights
Personal spending experienced a significant jump, increasing by $133.9 billion or 0.7%, surpassing the estimated 0.5% rise. This increase was driven by a $75.6 billion rise in service spending and a $58.4 billion uptick in goods spending. Notably, financial services, healthcare, and recreation services led the surge in service spending, while the goods sector saw major contributions from motor vehicles, prescription drugs, and gasoline.
Savings and Outlays
Personal outlays, encompassing PCE, interest payments, and transfer payments, rose by $134.7 billion. Despite the increase in spending, personal saving stood at $766.7 billion, with the saving rate at 3.7% of DPI.