Do American Consumers Have an Itchy Trigger Finger to Buy Again?
Led by long held low interest rates, the US has seen a pretty steady decrease in consumer debt over the past 10 months or so. While savings accounts have risen a hair in that time it has become clear that American’s have taken their own, hard-earned, lesson from this global-scale financial meltdown and have steadily paid off debt in lieu of saving or (worse) spending. This implications of this have been some difficult Retail Sales numbers and Consumer Confidence measurements, however in the long term it has also meant a shift in overall attitudes regarding how much Americans spend and more of a focus on whether or not the US is actually making anything. Yea for American’s, however there is a bit of a disconnect peaking over our huddled shoulders this month that may suggest Americans are tiring of their frugal mindset.
This month’s US Personal Consumption vs Personal Income numbers are actually in an unfavorable contrast with each other. While personal income decreased, (not much but decreased all the same) from .3% to 0% the percentage that represents the change in the total value of American wage-earners has actually vascillated very little within it’s range between 0 and .4% since last Fall. On the flip side personal consumption actually grew, a mere .3% but grew none the less and continues to grow, bit by bit over that same timeframe.
The fact that US wage earners are winning some, losing some on the income side of the ledger but continue to gradually spend may be signs that they’re prematurely changing their habits conducive to that of a stabilized economy.
We’ve had good signs of stabilization, and that’s wonderful, but US consumers need to be careful about getting too excited too quickly or we could easily find our way back in the red.
Why do you think American’s are steadily spending more before we’re out of this crisis? Do you think that behavior will help or hurt the US economy on the whole?
Triffany Hammond helps traders of all levels, gain the tools, resources and guidance necessary to build on their strengths and work around their weaknesses so that they can make the best possible decisions for themselves in the Forex Market. Triffany is a regular speaker and contributor at 
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