Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Consumer Spending, Manufacturing Drop; Construction Rises

Consumer spending during December posted its biggest drop since September 2009, according to a new U.S. Commerce Department report on Monday.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
February 2, 2015
Economic Watch: Consumer Spending, Manufacturing Drop; Construction Rises

Photo: Revisorweb via Wikimedia Commons

3 min to read


Photo: Revisorweb via Wikimedia Commons

Consumer spending during December posted its biggest drop since September 2009, according to a new U.S. Commerce Department report on Monday.

The 0.3% decline in personal consumption from the month before follows a downwardly revised 0.5% increase during November. The December drop was attributed mainly to lower gasoline prices and less auto sales plus indications consumers did more of their holiday shopping in November and October.

Ad Loading...

Despite the December drop, consumer spending in the final quarter of last year increased at an annual rate of 4.3%, the best pace since 2006.

The same report showed a 0.3% increase in December from November in personal income while it posted a 3.9% increase in 2014 from the year before. Consumer spending also increased 3.9% last year from 2013’s level.

“A welcome improvement in wage growth at year end as a decline in prices boosted real take home income. Still, consumers appear to be somewhat fatigued in their spending patterns, pulling back noticeably at the end of the year despite lower gas prices,” said Sterne Agee Chief Economist Lindsey Piegza. “In the end, low gas prices will provide only a temporary boost while the key equation in terms of long-term success remains organic job and sustainable income growth.”

Ad Loading...

Meantime, a separate report shows economic activity in the manufacturing sector expanded in January for the 20th consecutive month, but at a slower pace, according to the nation’s supply executives surveyed by the Institute for Supply Management.

The January Purchasing Managers Index registered 53.5%, a decrease of 1.6 percentage points from December’s seasonally adjusted reading of 55.1% and its lowest reading in a year. Of the 18 manufacturing industries, 14 reported growth in January.

A reading above 50% indicates manufacturing activity in the U.S. is expanding while one below that number shows it’s shrinking.

"Comments from the panel indicate that most industries, but not all, are experiencing strong demand as 2015 kicks off,” said Bradley J. Holcomb,” chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The West Coast dock slowdown continues to be a problem, negatively impacting both exports and imports as well as inventories."

The New Orders Index, which measures future production and is one of several components that make up the overall index, registered 52.9%, a decrease of 4.9 percentage points from the seasonally adjusted reading of 57.8% in December.

Ad Loading...

“After months of robust inventory building, a modest domestic consumer, restrained activity overseas and plummeting oil prices are finally forcing a reduction in production, a declining trend expected to continue for some time,” said Piegza. “While a positive contributor to 2014 gross domestic production, however, with global demand modest at best, and three consecutive quarters of robust inventory growth, producers will likely need to reign in activity to eat through existing stockpiles of goods, resulting in a net contraction to headline activity.”

Finally, a third report showed total U.S. construction spending in December increased 0.4% in November, according to the U.S. Commerce Department. The December level was 2.2% higher than compared to December 2013.

For all of 2014 U.S. construction spending was 5.6% higher than the level in 2013, but was lower than 5.7% pace of 2013 compared to 2012.

During December, spending on private construction increased 0.1% from November, while residential construction posted a 0.3% gain and nonresidential construction edged 0.3% higher.

For all of last year compared to 2013 these three sectors posted increases of 7.2%, 4.1% and 10.5%, respectively.

Ad Loading...

Highway construction in December was 2.1% higher than compared to November while it posted a 4.1% gain in 2014 compared to the year before.

More Fleet Management

HDT Cyber Stop graphic pairing a laptop displaying binary code with a person using a clipboard to inspect a truck chassis, against a background of padlock icons.
Fleet Management•November 2, 2026

Give Your Trucking Fleet a Cybersecurity Walkaround

Your fleet's cybersecurity policies may look good on paper. These seven checks can help you find out whether they’re working.

Read More →
Red Kodiak-branded autonomous tractor with Charger-branded trailer backed up to warehouse
Fleet Management•October 30, 2026

Kodiak Lines Up Fleets for Driverless Trucking

An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.

Read More →
Illustration with Star of David and EEOC logo
Fleet Management•by News/Media Release•October 28, 2026

ITS Logistics Settles Religious Harassment Case

The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.

Read More →
Ad Loading...
Truck on divided interstate highway driving toward sunrise
Fleet Management•October 27, 2026

Your Trucks Are Busy. That Doesn’t Mean They’re Winning.

High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.

Read More →
ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Ad Loading...
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Ad Loading...
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →