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Related: About this forumThis Shows Why Consumers Are Bogged Down
This Shows Why Consumers Are Bogged Down
by Wolf Richter April 4, 2016
[font color="blue"]The stagnation zone[/font]
Our ever exuberant US consumers spent on average $89 a day in March on discretionary items, according to Gallups Daily Tracking survey. That was up five bucks from February, which is within the typical range of seasonal increases. It matched the previous high for a month of March since the Financial Crisis: March 2013. In March 2014 and 2015, consumers spent less: $87 and $86 respectively. Flat for the past four years!
But March is a peculiar month, with strong predictive qualities for the entire year. Gallup:
For each of the past six years, the spending average for March has been a rough bellwether for that years spending, coming within $3 of the annual average. The months of April, June and October have come within this same range of the yearly averages since 2010. This did not hold true in March 2008 and March 2009, however years in which the recession and the financial crisis dealt their immediate blows.
And just how flat have the past years been?
This chart shows the monthly averages going back to 2008, when the survey began. The plunge and spike in 2008 was followed by the collapse as the Financial Crisis hit home. Then spending gradually recovered until 2013, when, at lower levels than 2008, it became range-bound a spending pattern that Gallup calls euphemistically, fairly consistent since then. The stagnation zone:
.....(snip).....
Many people have felt this way. Theyre not making more, and they cant spend any more on discretionary items because thats all theyve got. So rent goes up and health care goes up, and they shell out more money for tuition or the payment on their new car, but they have to make cuts elsewhere. Gas gets cheaper, so they can spend a little more on groceries or they might save up some to be able to pay the deductible and copay and go to the doctor. It just gets shifted around. Nip and tuck. ................(more)
http://wolfstreet.com/2016/04/04/this-shows-why-consumers-feel-and-are-bogged-down/
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This Shows Why Consumers Are Bogged Down (Original Post)
marmar
Apr 2016
OP
Since I'm not a "consumer", but a "citizen", it's not my job to consume,
Binkie The Clown
Apr 2016
#3
OnlinePoker
(5,702 posts)1. $2760 per month on discretionary purchases?
Last edited Tue Apr 5, 2016, 12:01 PM - Edit history (1)
Here's what they say aren't discretionary - home, vehicle or other major purchases, or normal monthly bills. If you've got nearly $2800 after all those have been paid, you're doing pretty well.
I can't imagine finding $89 of things I don't really need to spend money on each day. Maybe each week, or month.
Binkie The Clown
(7,911 posts)3. Since I'm not a "consumer", but a "citizen", it's not my job to consume,
so, for the most part, I don't. After my Social Security check comes in I take $40 from the ATM and it usually lasts me the month for discretionary purchases. I can't imagine finding $89 worth of crap I want to buy every day. That's too much work for an old retired geezer like me.
pscot
(21,023 posts)4. I may have spent $89 on discretionary
purchases in the last month.