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Consumer Spending Slides In All Important June, Gallup Finds
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.
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By Bye Q2 GDP surge...
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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.
Wait until people start having to pay their new "health insurance" premiums.
pods
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.
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.
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.
No, no, no.. it's the world cup! Too many people watching or not watching it.
It rained twice here and was really sunny too....must have been too sunny
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-...
Moar like the hundred buck a month cut in EBT bennies.
Wally World is the eCONomy.
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 ;-)
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.
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 ;-)
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!
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.
"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 .
I bought stuff in June. I bought stuff in July, and you should too.
bush: go out and shophttp://www.youtube.com/watch?v=fxk9PW83VCY
me too...preps, pms and such.
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
I called it last quarter.We're in a depression.
This is what a depression looks like with unlimited govt.Money printing.
Last quarter? Well, better late than never.
:)
pods
It's been a depression since 2000. The only "recoveries" have been Fed blown bubbles. This is not going to end well.... for anyone.
Yeah, the Fed "blows," alright.
Precious metals aside, I conclude that the majority of spending was on sun tan lotion, sun hats, umbrellas and wind breaks.
and prostate meds
And condoms.
Its just gonna get hotter through 3rd qtr. GDP is screwed.
ObamaScare ! .... the final nail in the consumer's coffin.
< Gosh, we thought ObamaScare meant free ! >
Lazy unpatriotic Americans. Get out and spend you lousy CONsumers. It's your duty and your natural born right!
With rhetoric like that, you'd make a fine POTUS.
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 !!
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."
Let's resurrect the term 'burden of consumption' - it sounds so noble.
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.
I'm outta fewd stamps Barry.
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.
good job
..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..
Financial repression is a very hidden tax. With interest rates on savings accounts at historic lows, the middle class' spending power gradually continues eroding.
Only a fool saves money in a political faith money system.
the usa trade deficit is wholly dependent on "the consumer". get out there and spend bitchez. [/s]
Fuck you, I ain't spending shit. Let his fucker burn bitchez!
Shit, what's a Chinaman to do?
Eat stir fried feline.
General Meows Chicken?
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.
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.
Too much hot air from CNBC.
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.
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.
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.
"All that money is sitting on the sidelines, ready to be spent any moment...."
BaaaWaaaHaaa!
Starve the beast. Spend nothing.
It snowed in Greenland in June. Also, the racist Republicans in the poll uniformly claimed they spent a negative $5103 dollars in June, thus making Obama look bad.
Obviously if spending per capita is declining we need to increase the number of 'capita' by allowing anyone who wishes to come here do so.
Yellen needs a new set of pom-poms.
THE TRUTH WILL OUT.
The only one spending is our government. they spend the money so we the people don't have to think that hard. They know best rite?
after food, what money remains?
Food inflation has been doing a slow creep up for so long I hadn't really noticed how bad it is until recently. I try to buy high quality food within reason and do all my own cooking -- no processed foods. Still, I can't get out of Trader Joe's, no matter what I'm buying, for less than 45-50 bucks for two less than full bags. The situation is dawning on me quite clearly now.
Raw nuts are part of my diet. Only 3-4 year ago another local chain, Sprouts, regularly had deep discount specials that rotated from almonds to walnuts to cashews to pecans, etc. Not only do those specials no longer exist whatsoever, but the base price is up 20-30%. Pecan prices are unreal and I've stopped buying them.
Yeah, if you're a lawyer, real estate developer, surgeon, etc. probably makes no difference at all. However, for the majority of the working middle class, there simply has to be less discretionary money available....has to be.
I (sort of) like Sprouts, but it is NOT a "local chain." It is owned and run by a hedge fund. BTW, at the Mountain View, CA Sprouts where I sometimes shop, the produce is well labeled in re country of origin. The bulk food (like the nuts you are buying) are not labeled in re country of origin at all. They could be from anywhere. Their bakery goods have the same weird 'n creepy ingredients that Safeway bakery goods have. I'm not saying don't shop there, but look first.
anyone who is a golfer here knows - empty parking lots and when I do golf I get below quoted price by just saying look the price at so and so golf course is this, and they then drop the rate to beat that quote. things are bad for all the golf courses in my area. people who golf can't seem to come up with the green fees..green shoots turned dark brown.
My golf addict friends haven't slowed a beat. Then again, they have a lot more money than I do.
Cant the US just print some really nice weather? Damn it!
This is going to get fun.
Bypass the pawns.
When are the stats for 2Q GDP released?
-as soon as the acid kicks in..
Another point is they are probably getting less for that $91 than they used to with inflation, shrinkflation, etc.
the GDP for any quarter is measured with a six week lag, so second quarter GDP takes 6 weeks to compile and is measured (or more accurately stated, not measured, but "surveyed" and seasonally adjusted) using data between 15 February and 15 may.
Trade accordingly. Just saying.
Onwards!