JPMorgan Chase Institute’s Local Consumer Commerce Index Shows a 0.1 Percent Decrease in Consumer Spending Growth in November 2016Source: Business Wire
Marks the fifth consecutive month of spending contractions; magnitude of contractions fell continually since August
Across all 15 cities, fuel spending contributed 0.1 percentage points to
growth, breaking a trend of negative growth contributions in virtually
every month since
This report provides a timely view of how the following cities and
surrounding metro areas are faring economically, both individually and
“While we are still seeing an overall contraction in year-over-year
local commerce growth, it’s encouraging to see the magnitude of these
contractions decreasing over time,” said
The key highlights from the latest Index include:
Houstonregistered a 3.3 percent decline in November 2016—a smaller contraction compared to the 6.1 percent drop in August 2016, but a larger contraction in comparison to the 2.9 percent drop in September 2016.
Detroitexperienced flat growth in November 2016, breaking a trend of declines in growth that started in July 2016.
- Small business growth rebounded significantly to contribute 0.9 percentage points in November, but this growth was offset by a 0.9 percentage point contraction in mid-sized business growth in that same month.
Other services, like barbers, health providers, and gyms, contributed
0.9 percentage points to growth in
November 2016, the largest contribution across all product types in that month. At the same time, durables spending subtracted 1.1 percentage points from growth, the largest detraction of any product type in November 2016. Durables have been a consistent drag on growth since August 2015.
The LCCI offers unique advantages over existing measures of consumer spending.
- The LCCI captures actual transactions, instead of self-reported measures of how consumers think they spend.
The LCCI provides timely data on spending in 15 major metropolitan
areas; such geographic granularity is unavailable in most other
spending measures. These 15 cities mirror the geographic and economic
diversity of larger metropolitan areas in
the United Statesand account for 32 percent of retail sales nationwide.
- The index also presents a more granular view of local consumer commerce through five important lenses: consumer age, consumer income, business size, product type, and consumer residence relative to the location of the business. For each lens, we show how different segments contributed to year-over-year spending growth.
- The LCCI captures economic activity in sectors that previously have not been well understood by other data sources. These include sectors such as food trucks, new merchants, and personal services.
Each release of the LCCI will describe the economic picture of local communities and provide a powerful tool for city development officials, businesses, investors, and statistical agencies to better understand the everyday economic health of consumers, businesses, and the places they care about.
JPMorgan Chase Institute