Personal Consumption Continues to Soar

Personal consumption as a percentage of gross domestic product (GDP) has risen to an all-time high to 71.2%. The US economy continues to be a debt-based, consumption driven economy. The great consumption trend of 1981 and bubble of 2000 has yet to pop. In other words, nothing has changed.

Personal Consumption Expenditures (PCE) As A %GDP and Personal Consumption Expenditures As A %GDP Average from 1947


Headline: Dollar Weakens, Treasuries Gain as U.S. GDP Growth Slows; Stocks Advance

The Dollar Index slid to the lowest level since 2008, Treasuries rose and gold rallied to a record after economic growth slowed. The Standard & Poor’s 500 Index climbed an almost three-year high as rising earnings and takeovers overshadowed the report on gross domestic product.

The Dollar Index tumbled 0.6 percent at 4:10 p.m. New York time after slumping to 72.871, an almost three-year low. It declined for an eighth straight day, its longest slump since 2009. Ten-year Treasury yields lost five basis points to 3.31 percent, gold jumped as much as 1.4 percent to $1,538.80 an ounce and silver rose for a second day. The S&P 500 climbed 0.4 percent to 1,360.48 while the Russell 2000 Index of smaller U.S. stocks rallied to a record for a second straight day.

Source: bloomberg.com