U.S. Consumer Spending Slows in September

U.S. Consumer Spending Slows in September
Americans' self-reported average daily spending fell to $74 in September, after climbing for two months and reaching $77 in August, its highest level in nearly four years. But Americans still spent more this September than they did in any September over the past three years.

The results are based on Gallup Daily tracking from Sept. 1-30. Each night, Gallup asks Americans to report how much they spent the prior day apart from normal household bills or the purchase of a car or home.

Lower- and Higher-Income Consumers Pull Back on Spending

Lower- and middle-income consumers, as well as those with upper incomes, spent less on average in September than in August. But upper-income spending in September was still higher than in the same month in 2009, 2010, and 2011. Lower-income Americans' average daily spending of $61 in September is on par with what it was in September of last year and 2009, but is higher than in September 2010.

Both groups' spending remains far lower compared with September 2008.

Bottom Line

After rising to an almost four-year high in August, Americans' spending slid back slightly in September. This may be partly tied to diminishing back-to-school spending. In 2010 and 2011, Americans' spending also declined from August to September. However, there are likely other issues influencing consumers' mood. The uncertainty of the election outcome, fear of the possible "fiscal cliff" fallout, and signs of a slowing global economy may all be affecting Americans' spending habits.

Additionally, spending declined in September even as Americans' confidence in the economy increased -- mainly due to Democrats' improved economic outlook, revealing that these politically influenced attitudes are not translating into economically optimistic behavior.
From: http://www.gallup.com
Updated: October 5, 2012