Wednesday, July 13, 2016
Consumer Spending Update: The Economic Dog Days Are Here
Consumers have grown more and more confident about their personal finances over the last five months, and with increased confidence came increased spending. But all good things must come to an end.
Just 37% now rate their personal finances as excellent or good, down eight points from last month and the lowest finding since September. Thirty-eight percent (38%) say their finances are only going to get worse. Just 26% say they are improving. July’s decreased confidence in personal finances comes as no shock: This is a trend we have seen for the last couple years.
Similar to 2015, this July shows a decline in spending indices across a number of categories. Particularly hard hit this month will be expenditures on household items and personal entertainment. More consumers (43%) also now say they are going out to eat less than they were six months ago, and 25% are opting for the cheaper, fast food option when they do.
The dog days of summer are already upon us, and so are the dog days of spending.
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