The Commerce Department announced on Friday that consumer spending in
the U.S. declined 0.2 percent m-o-m in December 2022 after a downwardly revised
0.1 percent m-o-m fall (from +0.1 percent m-o-m) in November. That was the
biggest monthly drop in consumer spending since December 2021 (-0.2 percent
m-o-m). Economists had
forecast a decrease of 0.1 percent m-o-m for December.
Meanwhile, consumer income increased 0.2 percent m-o-m in December,
following a downwardly revised 0.3 percent m-o-m rise (from +0.4 percent m-o-m)
in the previous month. This marked the weakest monthly advance in consumer
income since April 2022 (+0.2 percent m-o-m). Economists had foreseen a 0.2
percent m-o-m gain.
The December increase in personal income was due to gains in compensation
and proprietors' income.
Elsewhere, the personal consumption expenditures (PCE) price index,
excluding the volatile categories of food and energy, which is the Federal
Reserve's preferred inflation gauge, went up 0.3 percent m-o-m in December, following
an unrevised 0.2 percent m-o-m growth in November. Economists had expected
the indicator would rise 0.3 percent m-o-m.
In the 12 months through December, the core PCE surged 4.4 percent, decelerating
from an unrevised 4.7 percent in the
12 months through November. That was the lowest
rate since October 2021 (+4.3 percent). Economists had predicted an increase of 4.4
percent y-o-y.