[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
United States News Title: U.S. Consumers' September Spending Matches 2010 Low (Consumers Spending Crashes) U.S. Consumers' September Spending Matches 2010 Low $59-per-day average is down from August 2010 and September 2009 by Dennis Jacobe, Chief Economist PRINCETON, NJ -- Americans' self-reported spending in stores, restaurants, gas stations, and online averaged $59 per day during the first four weeks of September. Consumer spending is down from August ($63) and July ($68), and now matches its lowest level of 2010. Current spending is lower than that of a year ago and far below spending in September 2008, at the start of the financial collapse. U.S. Consumer Spending, January to September, 2008 vs. 2009 vs. 2010, Monthly Averages Weekly Self-Reported Spending Falls in Past Two Weeks Gallup's consumer spending measure averaged $56 per day in the two weeks ending Sept. 26. This is down from $64 and $61 during the prior two weeks of September. The most recent two weeks are not only among the lowest spending weeks of 2010 but also below spending levels of the same weeks in 2009. Self-Reported U.S. Consumer Spending, August-September, 2009 vs. 2010 Hitting an Economic Wall Again Former Federal Reserve Chairman Alan Greenspan noted earlier this year that the U.S. economy seemed to hit a wall in June. Since that point, Gallup and other economic data have shown the economy slowing, and economists have lowered their forecasts for the second half of 2010. Over the past couple of weeks in particular, Gallup's consumer spending measure shows another dropoff -- returning to the February lows for the year, and falling below year-ago "new normal" levels. At the same time, Gallup's underemployment measure shows more people losing their jobs in recent weeks -- with unemployment hitting 10% for the 30 days ending Sept. 27 and Sept. 28. Economic confidence is also running at its low point for 2010. It may be that today's unusually high economic uncertainty has put Americans in a wait-and-see mode. Consumers and small business owners may simply be pulling back until the economic landscape is clearer. On the other hand, this may just be a couple of weeks' economic pause that Gallup's everyday measurement of the economic data has revealed. Perhaps people are spending less after the back-to-school season or in anticipation of the coming holidays. It is possible that Gallup's economic measures will see a course reversal and turn more positive just in time for the Christmas holidays. However, if the spending and jobs trends of the past two weeks continue, it could result in even less growth than economists' revised projections suggest, and require further downward revisions, making for an extremely interesting Federal Reserve meeting in early November.
Post Comment Private Reply Ignore Thread |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|