Personal consumption spending for September is projected to rise 0.3% vs. the previous month in tomorrow’s delayed update from the government, based on The Capital Spectator's average econometric forecast. Today’s average projection matches the previously reported 0.3% increase for August. Meanwhile, the Capital Spectator’s average 0.3% forecast for September is at the upper range of several consensus predictions based on surveys of economists.
Here's a closer look at the numbers, followed by brief summaries of the methodologies behind The Capital Spectator's estimates:
(Click to enlarge)
VAR-3: A vector autoregression model that analyzes three economic time series in context with personal consumption expenditures. The three additional series: US private payrolls, personal income, and industrial production. The forecasts are run in R with the "vars" package.
R-1: A linear regression model that analyzes the historical record of personal consumption expenditures in context with retail sales. The historical relationship between the variables is applied to the more recently updated retail sales data to project personal consumption expenditures. The computations are run in R.