Economic Outlook is Bright, Consumer Spending Rising
$DIA, $SPY, $QQQ, $VXX
US consumer spending is stable and relatively high as Americans are more positive than negative about the national economy and fewer adults are unemployed than at any time in the past 16 years,
Gallup reports: Their daily self-reports of spending averaged $104, similar to the $107 average in April.
It is the 4th month running that Americans’ spending averaged $100 or higher, a 1st since Gallup began tracking this in Y 2008.
May’s average is in line with a generally higher level of spending in Y 2017 after nearly 8 years of typically sub-$100 figures.
The May average is based on more than 15,000 interviews conducted as part of Gallup Daily tracking throughout the month.
Gallup asks Americans each night to report how much they spent the previous day, excluding spending on normal household bills and major purchases such as a home or car. The measure gives an indication of discretionary spending.
Last month’s average is the highest for May since Y 2008, when self-reported spending averaged $114. Americans’ spending fell later that year as the global financial crisis took hold. By May 2009, their spending averaged about $63.
Among both higher and lower-income earners, average spending in May was similar to April. Americans living in households earning $90,000 or more annually spent an average of $169, which is among their highest averages in the past year.
Spending among Americans in households that earn less than $90,000 annually averaged $79. This is among the highest rates for this group over the past year.
Meanwhile, wage growth is still sluggish despite the unemployment rate being at a 16-year low of 4.3%.
Hourly compensation increased at a 2.2% rate in Q-1 rather than the 2.4% pace reported in May.
Hourly compensation rose at a 2.3% rate from a year ago, down from the 3.9% pace estimated last month.
Monday, the US major stock market indexes finished at: DJIA -22.25 at 21184.04, NAS Comp -10.11 at 6295.67, S&P 500 -2.97 at 2436.10
Volume: Trade on the NYSE came in light, with just 670-M/shares exchanged
- NAS Comp +17.0% YTD
- S&P 500 +8.8% YTD
- DJIA +7.2% YTD
- Russell 2000 +2.9% YTD
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