Gallup: Americans are cutting back on cutting back
A glimmer of light at the end of the tunnel may be present for consumer spending levels in the U.S., as the results of a recent Gallup poll found that shrinking numbers of Americans say they are spending less money than they used to.
Gallup chief economist Dennis Jacobe reported that “the current 47 percent who say they are ‘spending less’ is lowest of the four readings by a few points. However, the percentage who say they are ‘spending more’ is no different from what was registered last July.” This could indicate that the newfound growth in consumer sentiment is still in its embryonic stages.
Minor demographic differences were found in the Gallup poll, with liberals and young people less likely than conservatives and old people to be cutting back on spending.
Credit consolidation and the slow improvement of many other economic indicators have contributed to the gradual strengthening of American consumer spending. Experts say that this sector must recover before the rest of the economy can fully shake off the aftereffects of the recent recession.