Posted on 01/20/2023 3:05:09 AM PST by EBH
Consumer spending slowed and household finances weakened across all income levels last month. But households earning $100,000 a year or more reported shaving more off their spending than less well-off households did, according to a report released this week by Morning Consult, a decision intelligence company.
The report also found that real monthly spending among U.S. adults fell by 4.3% from November to December. Even so, 21.3% of U.S. adults said their monthly expenses exceeded their monthly income in December, up from 19.2% in November.
On average, households earning $100,000 a year or more said they spent about 10% less in real terms in December than they did the previous month. Households earning $50,000 to $99,999 and those earning less than $50,000 a year, meanwhile, reported that they cut their monthly spending bills by no more than 5% on average.
Across the board, households are cutting back on recreation, alcohol, vehicle insurance, and other services in December, while spending more on hotels, gas and airfares, the report found.
One theory on the spending cutbacks: Higher earners typically have more discretionary income, and likely have decided to exercise more fiscal caution after seven interest-rate hikes by the Federal Reserve last year.
The Morning Consult report did cite inflationary pressures. “Heightened budgetary pressures brought on by persistently high inflation are forcing trade-offs for consumers, leading to reallocation across categories,” it said. “For instance, as food grew more expensive over the past year, U.S. households accommodated an increase in grocery purchases by spending less at restaurants.”
Earlier last year, higher-income households led consumer spending in the face of rising prices, but household income, even for those earning six-figure incomes, has not been growing fast enough to keep up with inflation, she said.
(Excerpt) Read more at msn.com ...
"We are advising our clients to put everything they've got into canned food and shotguns". (Gremlins, 1984)
I hate liberals, and I hate the vegetable! I hate the globalists! And I despise that satanic group who gathered at Davos! Those Republicans who participated in that demonic meeting need to pay a price. All they did was put a heavier boot on the necks of the American people that are already struggling. They want to kill you. They want you to stop breathing, they want you to stop eating they want you to stop having babies so that the world will belong only to them. So that they can have their filet mignon, lobsters and champagne along with travel around the world as they please. This group is so freaking evil.
I’m old enough to remember the good old days when we threw toilet paper and eggs at houses, now we store them under lock and key. No, we’re not better off than we were 4 years ago.
Usury is going out of fashion.
Car repossessions are on the rise NOW...
Which should indicate housing will follow in about 6 months.
We are going to have a lovely summer.
Well, from where I see things...they already have all that.
So I do not get their point.
They can’t figure this out? That higher income households cut spending more than low income households?
It ain’t called DISCRETIONARY SPENDING for nothing.
Duh.
Sounds like a plan.
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