Spending Hasn’t Been This High in Almost a Decade

Self-reported spending approaches pre-recession levels

Author: Monica Melton

August 7, 2017

US consumer spending levels are nearly back to where they were before the global financial crisis in 2008, according to new survey data from Gallup.

Those polled spent an average of $109 per day in July, excluding spending on normal household bills and major purchases, such as a home or car. That was the highest figure reported by Gallup since May 2008, when the average hit $114 per day.

Daily average spending by consumers in the US fell precipitously soon after, thanks to the Great Recession.

The new data is something of a contrast to Gallup survey data released in May of this year, which found that 60% of financially worried consumers said they preferred saving to spending.

Prior to the fallout of the Great Recession, this group of financially stressed consumers were generally more apt to say they favored spending over saving. But that sentiment changed following the hardships brought on by the economy’s contraction.

eMarketer data projects that retail sales per person will hold at $19,000 per year over the next three years, until seeing a modest increase to $20,000 in 2020.

Photo credit: Bill Williams on Unsplash