Q2 2024 Consumer Spending Remained Robust
Spending growth continues to be above that of income growth.
- Q2 2024 Real spending grew 0.6% Q/Q vs 0.36% in Q1. (2.5% Y/Y vs 2.16% in Q1)
- Q2 2024 Real Disposable Income grew 0.25% Q/Q vs 0.33% in Q1 (0.93% Y/Y vs 1.5% in Q1)
Since spending growth is above income, consumers have compensated by reducing their saving rate.
IMO, the saving rate is already at very low levels, so an additional significant drawdown is less expected, could get to ~2-2.5%.
Hence, unless there is an increase in income growth, spending could start to get somewhat weaker.
The weakness in real durable and non-durable goods spending in Q1 saw a recovery during Q2 2024.
Sources:
Tableau
Google Sheets
Model Format