Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Consumer Spending and GDP Gain Among Other Indicators

New figures show biggest driver of the U.S. economy increased last month while the overall economy grew more than estimated a month ago.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
March 31, 2014
Economic Watch: Consumer Spending and GDP Gain Among Other Indicators

 

3 min to read


New figures show biggest driver of the U.S. economy increased last month while the overall economy grew more than estimated a month ago.

Consumer spending in rose 0.3% in February, according to a report released late last week by the U.S. Commerce Department. The increase is the biggest in three months and follows a 0.2% gain in January, but less than the 0.4% hike previously estimated.

Ad Loading...

Personal income during February rose by 0.3% Compared to a year ago personal consumption is up 3% while income has gained 3.1%. This follows a separate report from the Commerce Department showing the U.S. economy grew at a 2.6% annual rate in the final quarter of last year, compared to a 2.4% estimate a month ago and a 4.1% rate in the third quarter of 2013.

The new reading of the gross domestic product, which is a measure of the total output of goods and services, show for all of last year it expanded at a 1.9% rate, compared to 2.8% in 2012.

Much of the advance in the fourth quarter was due to increased consumer spending, gaining 3.3%, the best showing since the final quarter of 2010, and better than the earlier reported 2.6% increase.

Goods consumption was revised down from a 3.2% to 2.9% hike, but service spending was revised up from 2.2% to 3.5% gain, accounting for nearly all of the additional headline growth reported in the third revision of the fourth quarter.

“Consumption remains at a stagnant 2% pace. Still, consumers are spending despite uneven income growth,” said Lindsey Piegza, chief economist at the investment firm Sterne Agee. “The most recent upward revision to fourth quarter 2013 growth was thanks to a hefty upward revision to spending from 2.6% to 3.3%, the fastest pace since the fourth quarter of 2010.”

Ad Loading...

She says going forward, however, in order for consumers to maintain even this lackluster 2% pace, “we need to see organic job and income creation.”

“While a slowdown from the third quarter, the U.S. economy grew at a faster pace than previously reported at the end of 2013 as consumer spending rose by the most in three years. The spending rise itself reflecting a hearty increase in service spending, particularly in health care services,” Piegza said.

She notes business investment, however, was revised down significantly suggesting businesses remain hesitant to invest amid an uncertain outlook for the U.S. recovery.

Other economic indictors of importance to trucking that came out recently and are worth noting include:

New home sales in the U.S. fell 3.3% in February, hitting its lowest level in five months. The drop is being attributed to cold weather during the month and increasing mortgage interest rates.

Ad Loading...

New orders for durable goods increased 2.2% in February, following two consecutive monthly declines. The gain was lead by a 6.9% hike in new transportation orders. New nondefense orders in February fell 2.8%.

Shipments of durable goods during the same time increased 0.9%, following two straight monthly drops. It was also led by a gain in transportation equipment shipments, adding 1.3%, with nondefense shipments adding 0.1%.

Existing-home sales declined 0.4% to a seasonally adjusted annual rate of 4.60 million in February and 7.1% below the 4.95 million-unit level in February 2013. February’s pace of sales was the lowest since July 2012, when it stood at 4.59 million. 

More Fleet Management

Illustration of phishing email with trucks in background
Fleet Managementby News/Media ReleaseFebruary 3, 2026

New Phishing Scheme Targets Motor Carriers, FMCSA Warns

Beware of a new phishing scheme targeting motor carriers. Scammers are sending emails posing as FMCSA or DOT officials to steal data.

Read More →
Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
Ad Loading...
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Ad Loading...
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →
Ad Loading...
CargoNet infographic showing 2025 cargo theft trends
Fleet Managementby Deborah LockridgeJanuary 22, 2026

Cargo Theft Losses Jump 60% in 2025 as Criminals Target Higher-Value Freight

Cargo theft activity across North America held relatively steady in 2025 — but the financial damage did not, as ever-more-sophisticated organized criminal groups shifted their cargo theft focus to higher-value shipments.

Read More →