June US Consumer Spending Near 9-Yr Highs
Consumer spending in the US rose was $103 a day in June, the best performance for the month since Y 2008, according to a survey by Gallup.
The daily spending in May was $104.
Americans’ reported daily spending has averaged $100 or more since February, the longest stretch of 3X-digit spending averages Gallup has recorded in its trend dating to Y 2008, according to a statement.
The steadiness of Gallup’s May-to-June spending figures is consistent with the trend for the past decade. June spending has generally been flat or has dipped slightly.
Spending in July is likely to hold at its current marks, because in most years over the past 10 years, Gallup has recorded figures for July that were within $3 of June’s average.
Last year was an exception, though, as spending increased by $12 in July 2016.
The June 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.
The US Commerce Department said last Friday that personal income rose 0.4% in May, up from a 0.3% increase in April. But that strength wasn’t reflected in consumer spending, which rose just 0.1% last month after climbing 0.4% in both March and April.
After-tax income rose 0.6%, the biggest gain since December 2012.
The gap between the May increase in income and the increase in spending drove the US savings rate to 5.5%, the highest since last September, according to the data.
Economists monitor consumer spending closely because it accounts for about 70% of US economic activity.
President Trump gets an A+ rating for the economy.
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