Posted on 01/19/2023 1:43:10 PM PST by fluorescence
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. (On Wednesday, St. Louis Fed President James Bullard told The Wall Street Journal in a live-streamed interview that the Federal Reserve should not “stall” on raising its benchmark rates until they are above 5%.)
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.
(Excerpt) Read more at marketwatch.com ...
Simple, they don’t qualify for government perks. And if they do, don’t know it.
I just figured out how to make $3 worth of sphagetti sauce from an 88¢ can of tomato paste and some inexpensive spice powder. I’m feeling pretty good.
We’re spending more on hotels — want to spend time seeing a few aging family we may not ever see again, as well as spending it with our kids/grandkids — just seeing all who matter most before harder times hit, honestly.
What spices did you use?
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Maybe that is because they can AFFORD to?
(Just a wild guess...)
“Across the board, households are cutting back on recreation, alcohol, vehicle insurance, and other services in December, “
I guess I’m abnormal, but “vehicle insurance” isn’t really a category where I’m able to dial down my spending on a monthly basis.
How dare you not spend yourself to $0.00!
WTF is wrong with these people?
While no guarantee, it’s likely that alot of 100k+ earners are smart enough to read the spaghetti on the wall and are bracing for the coming year.
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Not to butt in here - but I'm going to butt in -
I would suggest garlic powder, basil, black pepper and ground rosemary powder.
Maybe some thyme also.
I wondered about that too. I guess if people are aggressively cutting back on their vehicle mileage (vehicle-driven vacations and trips), I suppose they could update their vehicle insurance for a lower mileage and thus possible lower rates.
Lots of work from home folks.
I think that would be a good car insurance deal.
Households with incomes greater than $100k have long since learned impulse control?
Yeah but how good is the sauce? Tell us how you do it.
They are more educated and therefor they see the coming SHTF.
Use fresh garlic it’s better than that yucky powder. I suggest Christopher Ranch
American grown and processed. It’s the real deal
People under 100k probably don’t have the discretionary spending that people over 100k do, and people are expect a crash in 2023 economically. They are holding on to money expecting better deals.
they bought all the sh!t they dint need???
Vinegar, Italian Herb, and black pepper.
I’m just experimenting. I’m sure it can be done much better.
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