U.S. Consumer Spending Climbs Close to a Four-Year High

Source: Gallup

WASHINGTON, D.C. -- Americans' self-reported daily spending averaged $77 in August, up from $73 in July, and the best August spending level recorded since 2008. It is also the highest average monthly spending since December 2008.

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U.S. consumer spending climbed to its highest level is nearly four years in August 2012 at the same time that job creation appears to be improving. Gallup's Job Creation Index rose to +19 in August, up from +17 in July, and the payroll company Automatic Data Processing Inc., reported job gains last month that beat the consensus expectations. Additionally, Gallup's unadjusted unemployment rate was down in August, although the adjusted rate rose. Still, there may be other factors involved, including back-to-school spending.

The higher spending in 2012 to date is still coming more from higher-income Americans than from middle-class and lower-income households. Lower- and middle-income Americans did increase their spending slightly in August, but not enough to bring their average for the year above the levels seen in 2011. Further job market improvement could encourage this group to start spending more, but it will take a lot to get them to spend anywhere near what they did in early 2008, before the financial crisis.


Read more: http://www.gallup.com/poll/157295/consumer-spending-climbs-close-four-year-high.aspx