Thursday, September 9, 2010

Gallup Confirms New Normal Stinks for Almost Everyone Who Didn't Get Bailout Money

Just in case you were feeling too cheery today, Gallup reports Consumer Spending Across All Income Groups Down in August:

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.

Despite the victory in the presidential election who would appear to be ideologically very comfortable in a Democratic Socialist party were he a European, please note what a disaster things have been for what should be his core constituency:

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.

Matters were no better in early September:

This year's somewhat disappointing back-to-school spending has been followed by few added expenditures for Labor Day. Consumer spending for the week before Labor Day averaged $61 per day -- the same as during the prior week, and down from a $70 average during the same week in 2009.

What Gallup does not say is that in the first part of 2008, discretionary spending was well over $100/day.

This is consistent with a modern-day depression.

Copyright (C) Long Lake LLC 2010

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