Current economic growth compared to last year
|Economic indicator||30-year minimum month-over-month change||30-year maximum month-over-month change||07/2017 month-over-month change||07/2018 month-over-month change|
|Consumer spending growth||-1.401%||2.789%||0.354%||0.196%|
This chart gives a quick look at current economic conditions compared to where we've been in the last 30 years based on three of the most commonly used indicators. Employment growth is slightly below one year ago and well above its 30-year average. The continued job gains in the past year point to a healthy labor market.
Consumer spending growth is above one year ago and below its 30-year average. Inflation is above one year ago and above its 30-year average. In June 2018, the Federal Reserve raised interest rates from 1.75% to 2%, the highest level since 2008, which shows a positive correlation between interest rates and inflation. In general, as interest rates are increased, consumers tend to save more due to higher returns from savings. Despite higher inflation, consumer spending increased compared to one year ago, likely due to the healthy labor market.1
1Source data: Bureau of Labor Statistics & Bureau of Economic Analysis
Data date: 08/28/2018
This publication is provided for your convenience and information only. Bank of America, N.A. assumes no liability for loss or damage as a result of your reliance on information in this publication. Photos are for illustration purposes only and are not to be construed as an endorsement of a particular product or company. Unless expressly disclosed otherwise, Bank of America, N.A. is not affiliated with or responsible for the products or services of any company that may be mentioned or depicted in this publication. Our goal is for the contents of this publication to be accurate as of the date this issue was printed. However, we do not guarantee that any content is accurate or complete.