Personal Income & Consumption

* In July 1999, the Federal Reserve Board merged the "Consumer Credit, Automobile" and "Consumer Credit, Other" indicators into one "Consumer Credit, Nonrevolving" category.
Consumer credit figures show monthly % change at annual rate and are seasonally adjusted
Last updated: 9/2/08

What the Indicators Mean

A handful of key indicators help show how thick consumers’ wallets are. The Bureau of the Census (part of the U.S. Department of Commerce) tracks retail sales monthly. These figures, which often follow seasonal cycles, show if consumers are spending more or less. Robust sales are a sign that the economy is healthy and people have money to spend. Economy watchers also pay close attention to durable good sales, which are items that aren’t quickly discarded and usually last several years. These tend to be big-ticket items, such as refrigerators or dishwashers. Sales for automobiles are broken out separately. The Department of Commerce also tracks the money people earn in salaries, pensions, social security and interest. Finally, while several indicators gauge spending strength, the Federal Reserve Board keeps tabs on the amount of outstanding consumer credit. Each month the board releases figures that show the debt that is assumed for purposes other than home mortgages.