Gallup Survey Shows Increase in Consumer Spending

According to Gallup, Americans' daily self-reports of spending averaged $89 in October, versus $87 in September. Spending last month is similar to what it was in October 2013 ($88), but it remains well above the lower levels Gallup measured from 2009 through early 2012.

Unlike the drop often seen in the month of September, spending is often fairly flat in October-based on not seasonally adjusted data. In the nearly seven years in which Gallup has tracked average self-reported daily spending, only once has there been a change between September and October that was larger than $5. This happened in 2008, when spending dropped from an average of $99 in September to $91 in October as the financial crisis deepened.

Spending among upper-income Americans increased slightly in October to $152 per day from $140 in September. This is still lower than several other monthly averages in the past year among Americans with annual household incomes of $90,000 or more. It is similar to the average spending among upper-income Americans in October 2013 ($156).

Spending among middle- and lower-income Americans, those whose annual household incomes are less than $90,000, was $76 per day in October, little changed from recent months. Spending among these Americans, who make up the bulk of U.S. consumers, tends to be more stable and has historically been lower than what is seen among higher-income Americans.

Gallup also stated, although consumer spending was generally stable in October, it remains higher than the levels found during the depths of the recession and its immediate aftermath. Consumers may be benefiting from low gas prices, and may be able to use more of their discretionary spending on other things without increasing their overall spending.