U.S. Consumer Spending Holds Steady, Consistent With 2011

U.S. Consumer Spending Holds Steady, Consistent With 2011

Americans' self-reported daily spending averaged $73 in November, essentially on par with September and October. It is also similar to the $71 Americans spent last November and slightly higher compared with November 2010 and 2009 -- but still much lower than in November 2008.

Consumer spending had risen to near a four-year high in August ($77), but has since fallen off slightly.

The results are based on Gallup Daily tracking from Nov. 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.

U.S. Upper-Income Spending Sees Worst November on Record

Upper-income Americans' (defined as those making at least $90,000 per year) self-reported daily spending was lower this November -- an average of $113 -- than in any November dating back to 2008. Upper-income spending has been trending downward since September, although the decline has not been large enough to drag down the overall spending figures.

Lower-income Americans' spending in November -- an average of $61 -- is on par with the $60 they spent last November. Lower-income spending is generally quite stable from month to month and has been holding steady since March.

Bottom Line

Although November marks the beginning of the holiday season -- generally a time for spending and splurging -- Americans did not spend any more than usual this November, and upper-income Americans appear to be spending less than usual. Americans' self-reported spending in November is on par with November 2011, matching Gallup's finding that Americans predict they will spend about as much on holiday gifts this year as they did last year.

However, spending did pick up in late November, around the time of Black Friday and in particular Cyber Monday, and has continued on a higher pace in Gallup Daily tracking in early December. Spending is also tracking higher compared with the same time last year. How long this upswing will continue and who exactly is spending more is unclear at this point. Upper-income spending typically increases sizably every December, so monitoring what this key group does this December will be an important sign of how the overall economy is faring.
From: http://www.gallup.com
Updated: December 7, 2012