In December, the month-over-month rate of growth for durable goods spending was 7.9%, which was the fastest rate of growth since May 2018. This was just the second month of faster than average growth since July 2018.

The annual rate of growth accelerated significantly to 4.7%. This was the fastest rate since April 2019. Because the real 10-year Treasury rate declined in 2019, and because of the acceleration in quarterly growth, there should be further accelerating growth in the first quarter of 2020.

Below are key spending categories that lead the most important manufacturing new orders and production indices. Note that all spending categories but appliances moved to accelerating growth. Further, appliances was very close to shifting to accelerating growth.

Accelerating Growth: air transportation services, clothing/footwear, durable goods, electronics, food/beverage, medical care, motor vehicles/parts, other non-durable goods, pleasure boats, total consumer

Decelerating Growth: 

Accelerating Contraction: 

Decelerating Contraction: appliances