Consumer Spending Slides In All Important June, Gallup Finds

Tyler Durden's picture

It appears the hopes and dreams of a resurgence in US GDP in Q2 will have to be extended-and-pretended another quarter. As Gallup notes, Americans' self-reports of daily spending fell back in June, averaging $91 for the month - down notably from a six-year high of $98 in May - and flat to the $90 average found in June 2013. Not exactly the pent-up demand 'surge' so many economists (and Fed PhDs) have been calling for... Even more concerning, Gallup notes, the drop in daily spending among all Americans can largely be attributed to upper-income Americans spending less in June. Even the 1% are cutting back?

 

As Gallup notes,

This $91 figure for June suggests a mixed bag for the economy. While it represents a much higher level of consumer spending than the $60 to $70 averages found for much of 2009 to 2012, it also represents the first decline in the monthly average since January of this year.

While Americans' self-reported spending in June was generally on par or lower than their average May spending, this month's $7 drop is one of the largest recorded by Gallup during this time of year since 2008, when June spending fell by $10. The June 2008 spending average of $104 is still the highest average for that month in Gallup's six-year trend.

...

The drop in daily spending among all Americans can largely be attributed to upper-income Americans spending less in June. Americans living in households with $90,000 a year or more in income reported spending on average $189 a day in May, but this dropped to $157 in June.

 

As Gallup concludes, Americans' average daily spending dropped in June from May's levels. This indicator fits in the context of scores on Gallup's other economic measures. Job creation remained flat, although maintaining May's six-year high. Economic confidence dipped slightly from May, but remains higher than the economic confidence found several years ago in the depth of the recession.

That self-reported spending did not increase in June is important, given that consumer expenditures are a significant driver of the U.S. economy. While Americans are spending more than they did several years ago, spending has not returned to pre-recession levels.

*  *  *

By Bye Q2 GDP surge...

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AlaricBalth's picture

It's the weather. Much too hot to spend money. Climate change has altered my spending habits. Either too hot or too cold. Never just right. 

pods's picture

Wait until people start having to pay their new "health insurance" premiums. 

pods

ArkansasAngie's picture

Inflation will keep that number high. Rent up.  Food up. Gas still up. F'ing cable TV up.

Is there another Apple new product coming out to save the day?

Who needs consumer spending when you've got Mid term elections pumping money into the economy and creating part time jobs.

 

Temporalist's picture

This is very much just like how "lowflation" replaced inflation; we now have "Nonsumers" instead of consumers.

Krugman and Yellen will fix it by rubbing a little paper on it.

Wait What's picture

what's worse than a June drop in consumer spending?

a 50%+ drop in consumer spending in July.

I read this morning that revenue from filmgoers over the 4th of July weekend dropped from around $235 billion in 2013 to $127 billion in the US.

that's going to put a dent in the shiny new car that Q3GDP is supposed to be.

rum_runner's picture

No, no, no.. it's the world cup!  Too many people watching or not watching it.  

kliguy38's picture

It rained twice here and was really sunny too....must have been too sunny

Headbanger's picture

And all that wind too!  Way way too much wind over 5mph..

It's "Climate Disruption" I tell you!  CLIMATE DISRUPTION!!

Oh the agony..

 

Oh wait..

http://www.forbes.com/sites/jamestaylor/2014/06/25/government-data-show-...

espirit's picture

Moar like the hundred buck a month cut in EBT bennies.

Wally World is the eCONomy.

nmewn's picture

This weather thingy is going to destroy whats left of the economy.

We need to find a way to tax it into doing our bidding ;-)

Jumbotron's picture

Homeland Security has just put Mother Nature on the Terrorist Watch List.

H.A.A.R.P. is now being tweaked to provide a better response to such threats by Mother Nature.

Plus....H.A.A.R.P.'s servers have been connected into the database in Utah of the N.S.A.

Of course...with Chaos Theory being war-gamed now....(think butterfly wings in China causing Hurricanes in the Atlantic)....if you fart in public, expect to be droned.

nmewn's picture

Uh oh, sounds like this shifting of "human capital" is gonna cause some job vacancies for inspecting little old ladies bungholes at airports.

The authoritarians work is never done ;-)

CheapBastard's picture

Fellow down the block is a regional manager of a retail chain store said June sales were miserable and even worse, he said ‘foot traffic” was way down. This means people are not even entering the stores despite all the coupons, ‘cash-backs,’ discounts, etc. He attributes it to ‘broke, depressed consumers.’ He said July 4th weekend was “dead.”

 

He also said those expecting the internet sales tax to push people into the bricks stores were wrong. Didn't happen. No money to spend nowhere.

 

Forward!

Jumbotron's picture

Fellow down the block is a regional manager of a retail chain store said June sales were miserable and even worse, he said ‘foot traffic” was way down. This means people are not even entering the stores despite all the coupons, ‘cash-backs,’ discounts, etc. He attributes it to ‘broke, depressed consumers.’ He said July 4th weekend was “dead.”

 

He also said those expecting the internet sales tax to push people into the bricks stores were wrong. Didn't happen. No money to spend nowhere.

 

Forward!

 

Reminds me of the Thanksgiving of 2006 vs 2007.  I had lost a good paying job and was working two jobs to make ends meet.  One of them was a shitty part time job with Office Depot.  We had a full staff in every department in 2006 and Thanksgiving 2006 sales were like gangbusters.  Fast forward to 2007 and I and the copy girl were the only people on the floor for 8 hours until the evening shift of two people came in.  Then came Thanksgiving 2007.  We opened an hour later than 2006 and after the 1st hour we were dead.  We could have closed up shop for the rest of the day.  We didn't even have stragglers coming in the afternoon once they had hit all the sweet spots in the morning.

Then not long after came the collapse of 2008.

Sounds to me like history is rhyming.

Jumbotron's picture

"inspecting little old ladies bungholes at airports."

That's a picture I'm am going to have to drink ( a LOT ) out of my head .


p00k1e's picture

I bought stuff in June.  I bought stuff in July, and you should too.

 

bush: go out and shop

http://www.youtube.com/watch?v=fxk9PW83VCY

viahj's picture

me too...preps, pms and such.

JustObserving's picture

Who the fuck cares what Gallup says?  The US BLS has been making up statistics for more than 30 years now.  There is no economic statistic that cannot be adjusted to move the markets higher.

Forward

drstrangelove73's picture

I called it last quarter.We're in a depression.
This is what a depression looks like with unlimited govt.Money printing.

pods's picture

Last quarter?  Well, better late than never.

:)

pods

SDShack's picture

It's been a depression since 2000. The only "recoveries" have been Fed blown bubbles. This is not going to end well.... for anyone.

Dollarmedes's picture

Yeah, the Fed "blows," alright.

Rosie-Redknapp's picture

Precious metals aside,  I conclude that the majority of spending was on sun tan lotion, sun hats, umbrellas and wind breaks. 

Doubleguns's picture

Its just gonna get hotter through 3rd qtr. GDP is screwed. 

Rainman's picture

ObamaScare ! .... the final nail in the consumer's coffin.

< Gosh, we thought ObamaScare meant free ! >

Dr. Engali's picture

Lazy unpatriotic Americans. Get out and spend you lousy CONsumers. It's your duty and your natural born right!

Soul Glow's picture

With rhetoric like that, you'd make a fine POTUS.

TWFTG's picture

You are 100% right !! These bastard traitors need more credit cards for buying useless stuff .

Consumption is a national security issue !

They dont get it !!

Milton Waddams's picture

You're right. If these worthless eaters aren't willing to leverage-up and buy "butter" in a ZIRP / NIRP world...

 ... there will be "guns."

Al Huxley's picture

Let's resurrect the term 'burden of consumption' - it sounds so noble.

Carpenter1's picture

Meaningless number if not combined with the total number ot spenders. The pie of consumers available to spend is shrinking, all we're doing is measuring the brightest spots in the economy, leaving out those who spend practically nothing per day.

 

That would be roughly 100 million according to government handout data.

orangegeek's picture

I'm outta fewd stamps Barry.

Bemused Observer's picture

I've actually spent more than twice the monthly average for the past few months. But not at the retail level.

I've been doing a lot of shopping, second-hand. Cash only sales, no sales taxes, no paper trails. I get what I want, but I avoid feeding the beast.

And the stuff I sell makes me more money than I originally spent, meaning I've gotten everything for free...actually got PAID to take it.

It's my own form of protest, my little "economic pitchfork" aimed at TPTB.

PoliticalRefugeefromCalif.'s picture

..gone fishin' sign replaced by a gone gault sign all across America..

Starving the beast is the only way to defeat it, the Leviathan is already feeling the hunger pangs..

Eirik Magnus Larssen's picture

Financial repression is a very hidden tax. With interest rates on savings accounts at historic lows, the middle class' spending power gradually continues eroding.

Space Animatoltipap's picture

Only a fool saves money in a political faith money system.

buzzsaw99's picture

the usa trade deficit is wholly dependent on "the consumer". get out there and spend bitchez. [/s]

foodstampbarry's picture

Fuck you, I ain't spending shit. Let his fucker burn bitchez!

Soul Glow's picture

Shit, what's a Chinaman to do?

Ban KKiller's picture

Me? Well I shop black market first before thinking of "new". 

"Pent up demand", perhaps. Money? Not so much.  Oh...Cheneys are traitors. Just a reminder so you know who the enemies are. 

Think juvenile bankster (skunk) got into the chicken coop. Now we have a trap set with chicken bones, bacon and a little old ladies bank account. If we catch it we will release at the cop shop. 

yogibear's picture

Well I shop black market first before thinking of "new". 

Exactly what many 20 and 30 somethings do nowadays.  Enormous bargins and reuse.

Know someone that just picked up a $700 camera for less than $400. 

yogibear's picture

Too much hot air from CNBC.

SMC's picture

Bet a cup of coffee, that somewhere, a regime connected academic asshat is busy working on a proposal that the taxpayers fund a 10 Million+ USD "study" with "sufficient flexibility" to support a regime press release explaining why employment statistics have decoupled from spending and how it is good, just, patriotic and portrays the Obummer's greatness at work for "We the Sheeple". LOL.

yogibear's picture

Wall Street has forced 20 and 30 somethngs to look for used 2nd and 3rd-hand goods and autos to find ways to save so they can pay their student loans and live with their lower salaries.

Now their hooked. Why buy new and retail as well as pay taxes.

A win-win for the underground economy.

SDShack's picture

Just like we have bi-flation (inflation for goods & services you need to survive, and deflation on wages), we have bipolar consumer spending. The coveted 18-39 demographic is living at home, sponging off mom & dad for room & board & transportation, while going into debt for a college education to work a part time or full time job that has nothing to do with their major, while having every iGadget as soon as it comes out, and fill their free time either playing video games (which they buy) or going out with friends and partying. They are being trained to be dependent on others because they choose to live beyound their means, plus failing to plan for their future. The perfect debt slaves are being grown. Any inheritence they eventually get from Mommy & Daddy will be pissed away immediately to cover their ever growing expenses, forcing them into more debt, and leaving them progressively worse off the more they spend. I've seen it first hand.