Week of October 1, 2018

Economic snapshot

Current economic growth compared to last year

Current economic growth compared to last year
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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
Employment growth -0.601% 0.409% 0.099% 0.130%
Consumer spending growth -1.401% 2.789% 0.354% 0.196%
Inflation -1.144% 0.960% 0.124% 0.067%

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

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