Friday, August 12, 2016
Consumer Spending Update: Does Increased Confidence Mean More Spending?
Last month, as consumers lost confidence in the economy and their own personal finances, they not surprisingly decided it was time to tighten their belts on spending.
According to the latest Rasmussen Reports Consumer Spending Monitor, however, consumers are now feeling better about the state and direction of the economy, with month-over-month indices up 8.5 points and 10.6 points respectively. Consumers also give higher ratings to their own finances, up five points from the beginning of July. But there's less confidence when it comes to the future direction of their personal finances: That confidence is up only 1.3 points from a month ago.
Does renewed confidence mean looser belts in the month to come? For now, that doesn’t seem to be the case.
Just 21% anticipate more spending this month, the lowest finding since the beginning of the year following the burst of holiday shopping in November and December. Hardest hit will be purchases for home improvements and personal entertainment. Spending on household items and clothing, footwear and accessories will see only modest growth.
For more information on Rasmussen Reports consumer spending and economic data, send an e-mail to email@example.com.
For Rasmussen Reports, this is Beth Chunn.