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
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.

Ad Loading...

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.”

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.

Ad Loading...

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.

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

Geotab screen on AI concept background
Fleet ManagementJune 17, 2026

What Geotab's New AI Connector Means for Fleets

Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.

Read More →
Image of computer screen with BidBoardX interface

New C.H. Robinson Tool Opens Door to More Predictable Freight

BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.

Read More →
Amazon electric cargo bike on New York City street
Fleet ManagementJune 15, 2026

New York City's Microhub Project is Delivering Results

Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.

Read More →
Ad Loading...
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeJune 12, 2026

Time is Running Out to Apply for Exclusive HDT Event

Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.

Read More →
Empty trailer with worker loading a pallet of cargo
Fleet ManagementJune 10, 2026

Amazon Launches Less-Than-Truckload Freight Offering for All Businesses   

This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.

Read More →
Ad Loading...
Stacks of intermodal containers at port with truck driving between them

Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall

After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.

Read More →
Equity Interest Auction
SponsoredJune 8, 2026

AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!

Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.

Read More →
Volvo OTA updates.

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities

The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.

Read More →
Ad Loading...
Podcast thumbnail illustration
Fleet ManagementJune 4, 2026

How Waste Connections is Using Data, Telematics, and AI

How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.

Read More →