Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Consumer Spending Jumps, Service Sector Declines

Economic Watch: American consumers opened their wallets a whole lot more in May, with consumer spending increasing the most in nearly six years.

by Staff
June 25, 2015
Economic Watch: Consumer Spending Jumps, Service Sector Declines

 

3 min to read


American consumers opened their wallets a whole lot more in May, according to a new U.S. Commerce Department report, with consumer spending increasing the most in nearly six years.

The 0.9% increase from the month before, the biggest since April 2009, came as the government also upwardly revised April’s performance from no growth to a 0.1% gain.

Ad Loading...

On a three-month annualized basis, consumer spending is up 4%, on par with the pace at the end of last year.

The same report also showed a 0.5% increase in personal income for the second straight month, the best back-to-back monthly hikes since early 2014, while the personal savings rate fell to 5.1% from 5.4% in April.

Lindsey Piegza, chief economist at the investment banking firm Stifel, called it “a much more favorable picture of the U.S. consumer, as May spending surged relative to the lackluster pace over the first couple of months of the year. At this trajectory, if sustained, second quarter gross domestic product is positioned to outpace our sub-2% forecast.”

Ad Loading...

She cautioned that even with an above trend growth rate from April-June, coupled with an annualized 0.2% in the GDP across the first three months of the year, first half growth will remain a disappointment.

“After all, consumption is averaging just 0.2% over the past six months, meaning a more positive, but hardly impressive trend,” she said.

The Federal Reserve earlier hinted of a increase in interest rates this summer after being near zero percent for many years, however, the latest indication is that it is hoping for such a liftoff later this year.

A separate report on the service sector part of the economy was less encouraging.

The Flash U.S. Services Purchasing Managers Index from the financial information services information service provider Markit fell to 54.8 in June, from 56.2 in May, though still above the neutral 50 threshold for the 20th successive month.

Ad Loading...

The report highlighted a further moderation in new business growth from March’s recent peak. Anecdotal evidence suggested that improving domestic economic conditions continued to support new order volumes, although some firms noted a degree of caution among clients about the business outlook, according to Markit. Reflecting this, service providers signaled the least optimistic year-ahead outlook for business activity since March. The degree of confidence in June was also weaker than the average since the survey began in October 2009.

“The latest flash PMI surveys showed the smallest rise in service sector activity since January and the slowest growth of factory output for over a year and a half, linked to the strong dollar,” said Chris Williamson, chief economist at Markit. “With the exceptions of the weather-related slowdown at the turn of the year and the 2013 government shutdown, June saw the weakest pace of economic growth since May 2013.”

He said while this survey and one covering the U.S. manufacturing sector point to the economy growing at an annualized rate of around 3% in the second quarter as a whole, there has clearly been a loss of momentum in recent months.

“With June also seeing one of the smallest increases in new orders recorded over the past two years, the surveys suggest that GDP growth could slow appreciably in the third quarter,” Williamson said.

More Fleet Management

Headshot of Adam Buttgenbach with a Pepsi-branded Tesla Semi in the background
Fleet Managementby Deborah LockridgeAugust 18, 2026

Adam Buttgenbach’s Approach to Electric Trucks: Start With Where They Fit

HDT Truck Fleet Innovator Adam Buttgenbach helped PepsiCo build one of North America’s largest EV fleets by focusing on where electric trucks make operational sense.

Read More →
Deen Albert in collared shirt superimposed on background showing a Grand Island Express blue tractor pulling a trailer, plus the HDT Truck Fleet Innovators 2026 logo
Fleet Managementby Deborah LockridgeAugust 17, 2026

Deen Albert: Let Automation Do the Math, People Make the Decisions

HDT Truck Fleet Innovator Deen Albert makes sure people are still at the heart of operations at Grand Island Express, even while adopting artificial intelligence tools. AI-assisted dispatch helped boost revenue 25% with the same number of trucks.

Read More →
Illustration of computer screen with Trimble Arc Agent screen
Fleet Managementby Deborah LockridgeAugust 14, 2026

Trimble’s New AI Agent Takes Aim at Fleet Back-Office Busywork

Arc Agent works across Trimble TMS products to automate repetitive tasks such as freight orders, maintenance, invoices, fuel costs and more.

Read More →
Ad Loading...
Photos of three men and two women with HDT Truck Fleet Innovators 2026 logo
Fleet ManagementCover Storyby Deborah LockridgeAugust 13, 2026

How HDT’s 2026 Truck Fleet Innovators Are Rethinking Fleet Operations

Meet five trucking leaders who are challenging assumptions, solving operational problems, and putting innovative ideas to work.

Read More →
Graph showing how contract rates and spot rates converged in July
Fleet Managementby StaffAugust 12, 2026

Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall

“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.

Read More →
Line graph showing container import volumes
Fleet Managementby StaffAugust 7, 2026

Import Cargo’s Early Peak Season is Winding Down

There was an early start to peak season this year at the nation's gateway ports, as retailers brought in merchandise ahead of tariff changes in late July and responded to other supply chain uncertainties,

Read More →
Ad Loading...
Blue infographic with graphs illustrating cargo theft trends in the second quarter of 2026
Fleet Managementby Deborah LockridgeAugust 6, 2026

Fewer Cargo Thefts, Bigger Losses: Criminals Target Higher-Value Loads

CargoNet says organized theft rings are stealing fewer shipments but choosing more valuable freight, including metals and technology, resulting in record losses.

Read More →
Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Ad Loading...
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →