Underneath The Surface Of January Personal Consumption

Nominal personal consumption expenditures in the rose .4% month over month in January, beating expectations for a .2% increase.  The increase in services drove the increase, while month over month comparisons show a drop in spending on goods--both durable and non-durable.



The overall monthly increase in nominal personal consumption amounted to roughly $48 billion, on a base of $11.7 trillion.  The monthly increase in services spending was almost $73 billion, accounting for over 100% of the total increase in spending.  In particular, household spending on utilities increased by $35 billion and spending on healthcare increased $30 billion.  So, non-discretionary spending accounted for more than the entire increment to spending in January.