US household spending growth declines in December 2022: New York Fed

By Ovunc Kutlu

ISTANBUL (AA) - US household spending growth declined in December 2022, according to a survey released Tuesday by the Federal Reserve Bank of New York.

The median increase in monthly household spending declined to 7.7% in December 2022, said the Survey of Consumer Expectations Household Spending.

The figure is down from its series high of 9.0% in August; however, it remains well above its pre-pandemic level of 2.5% in December 2019, it said.

"Some 56.4% of households in December 2022 reported making at least one large purchase in the last four months, below the 61.7% reading in August and below the December 2021 level of 58.1%," the survey noted.

The New York Fed said median expected growth in monthly overall household spending over the next year decreased to 4.0% in December, from 4.4% in August.

Median year-ahead expected spending growth on housing (3.2%) and food (8.1%) declined, with 3.2% and 8.1%, respectively, while clothing, transportation, medical care, utilities, and recreation all increased.

The survey is conducted every four months, providing information on American consumers' experiences and expectations regarding their spending patterns.