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Consumer Spending Sinks in June

American-flag-moneyAmericans reported spending less money in June compared to May, marking the first monthly decline in self-reported consumer spending this year.

In a survey of nearly 15,000 U.S. adults, Gallup found the daily amount spent by Americans was an average $91, down from a six-year high of $98 the month prior and about level with last year. The June record for average daily spending is $104, achieved in 2008.

Though spending remains at a much higher level than where it was through most of 2009–2012, the $7 drop from May to June represents one of the larger declines recorded by Gallup during this time of year.

The drop in daily spending among all those surveyed stems mostly from a decline in daily spending among upper-income Americans. According to Gallup, respondents living in households earning $90,000 or more a year reported spending an average $157, down more than $30 from May. Spending was steadier from month to month among those in the lower income brackets.

Gallup writer Rebecca Riffkin said June's average "suggests a mixed bag for the economy."

"That self-reported spending did not increase in June is important, given that consumer expenditures are a significant driver of the U.S. economy," Riffkin wrote. "While Americans are spending more than they did several years ago, spending has not returned to pre-recession levels.

"It may take more time before the recent encouraging improvements in the labor market and economic confidence lead to further increases in consumers' spending," she concluded.

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