December 2017 and December 2018 indicators versus the 30-year average
|Economic indicator||30-year minimum month-over-month change||30-year maximum month-over-month change||12/2017 month-over-month change||12/2018 month-over-month change|
|Consumer spending growth||-1.40%||2.79%||0.26%||-0.54%|
Benchmark interest rate hikes by the Federal Reserve Board last year may have helped to decrease the rate of inflation as it fell below the 30-year month-over-month average in December 2018.1 Employment growth was also higher than the average.
However, labor force gains did not improve consumer spending. This may be due to a rise in short-term interest rates, waning consumer confidence or growth in low-income jobs. Declining consumer spending may hamper housing demand. The Federal Reserve has indicated that it may wait until the summer to decide on future rate hikes.
1Source data: Bureau of Labor Statistics/Bureau of Economic Analysis/Federal Reserve
Data date: 3/06/2019
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