Consumer Spending Across All Income Groups Down in August

Year-over-year self-reported spending is down compared with July 2010 and August 2009

by Dennis Jacobe, Chief Economist

PRINCETON, NJ -- Americans' self-reported average daily spending in stores, restaurants, gas stations, and online averaged $63 per day during August -- down $5 from July, and down $2 compared with August 2009. Consumer discretionary year-over-year spending is thus running just slightly below the depressed "new normal" rate of a year ago.

Upper-Income Spending Remains Far Below May 2010 Levels

Upper-income Americans (those making $90,000 or more annually) reported spending an average of $109 per day in August, down $10 from June and July, and down $36 from May. Spending among this group is also down $7 compared with August 2009. Only once -- in May -- has 2010 upper-income spending exceeded the 2009 "new normal" spending range of $107 to $121 per day.

Month-Over-Month Middle- and Lower-Income Spending Falls

Middle- and lower-income Americans spent an average of $54 per day during August -- down from $64 in July and $62 in June, and lower than the $57 seen in August 2009. Americans in these income groups had been spending at the higher end of last year's "new normal" range of $52 to $61 but are now back to the lower end of that range. More...