Week of April 15, 2019

Consumer Financial Health

Quarterly snapshot of key indicators

Quarterly snapshot of key indicators
Economic Indicator Q1/2018 Q2/2018 Q3/2018 Q4/2018
Year-over-year growth of consumer credit 4.6% 4.2% 4.9% 4.9%
Year-over-year growth of consumer spending 4.3% 4.9% 5.2% 4.6%
Year-over-year growth of average weekly earnings 0.9% 0.5% 0.8% 1.1%

Average weekly earnings had a 1.1% year-over-year increase in the fourth quarter—the largest gain in 2018.1 However, consumer spending declined to 4.6%, while consumer credit remained flat.

The decrease in consumer spending may be due to lower confidence in the economy despite rising wages. In addition, a higher labor force participation rate may slow down wage growth as more people look for work.

1Source data: Federal Reserve/Bureau of Economic Analysis/Bureau of Labor Statistics

Data date: 3/12/2019

 

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