US Spending Decreases to Lowest Point in 2015 in September

The US Spending Monitor decreased 3.8 points in September, reaching its lowest point in 2015 and the lowest point since August 2014. Retail spending index decreased to 3 points under the 12-month average. The decrease comes with increased negative views on the economy, spending and personal finances. Over 60% of respondents rated their personal finances as fair or poor while 35.8% stated finances were getting worse. 62.7% of respondents have 3 months or less of emergency savings, while

23.7% have none.

Retail spending continues its 4-month continuous decline. 38.2% of adults are spending less on household expenses, 37% spending less on household improvements and 33.3% spending less on clothing, footwear and accessories. The household improvements category has the highest percentage planning to spend in this category, but with only 18.9% expecting to spend more in the next month.

A majority of retail purchases are expected to be made at a retail store next month. It is expected that purchases made using mobile devices or personal computers will increase as the holiday season approaches and pre-Cyber Monday deals start.

Source: Chain Store Guide

US Consumer Spending and Retail Spending Decline in July

US consumer confidence declined 5.3 points in July, dropping to the lowest point since November 2014. The majority of those surveyed, 70.8%, believe the economy is fair or poor, and 41.4% believe it is getting worse. The perception of personal finances remained stagnant, a greater percentage this month felt finances were getting worse. 47.2% report they do not expect added expenses or a shortfall in the next 30 days and 36.8% believe that they will.

Retail spending also decreased in July, down to the lowest level since January. Household improvements still has the largest percentage of adults that say they will spend more this month with 19.8%, but this percentage was 22.9% last month. While spending in household improvements and discretionary spending has gone down, expected spending on clothing, footwear, or accessories, and household expenses has gone up. Change in August is not expected, as 46.8% reported expecting to spend about the same amount next month.

Source: Chain Store Age