It’s the Goldilocks consumer: spending growth isn’t too fast, and isn’t too slow.
The growth rate is a touch lower than in years past, but the current three percent rate (inflation adjusted) is sustainable in the long run. Income has been growing at a faster pace, so the savings rate is slowly improving. The data show that housing weakness has not spilled over to the consumer side, except in the sense that housing exuberance is no longer over-inflating consumer spending.
Business planning implications: Consumers are in strong shape, plowing ahead at a moderate growth rate.