Economic Release Snapshot: Spending Growth Declines in July

Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead. 

Reports for the Week of August 22

Durable goods orders (July, preliminary) 

• Expected/prior durable goods orders monthly change: +0.8%/+2.2%
• Actual durable goods orders change: 0%
• Expected/prior core durable goods orders monthly change: +0.2%/+0.3%
• Actual core durable goods orders change: +0.3%

Headline durable goods orders were unchanged during the month against calls for a 0.8 percent increase due to slowing transportation orders. Core durable goods orders, which strip out transportation, increased by more than expected and signaled continued solid business investment.

Personal spending and personal income (July)

• Expected/prior personal income monthly change: +0.6%/+0.7%
• Actual personal income change: +0.2%
• Expected/prior personal spending monthly change: +0.5%/+1.0%
• Actual personal spending change: +0.1%

Both personal income and spending increased by less than expected in July, but the reports showed signs of continued consumer spending despite the miss against expectations.

Upcoming Reports for the Week of August 29

Conference Board Consumer Confidence (Tuesday) 

Consumer confidence is expected to improve modestly during the month, which would end a streak of three consecutive months with lowered confidence.

ISM Manufacturing (Thursday)

Manufacturer confidence is set to decline modestly in August yet remain in expansionary territory.

Employment report (Friday)

Economists expect to see 300,000 jobs added during the month, which would be a strong month for job growth on a historical basis.