What a surprise this has turned out to be: American consumers are spending less and saving more!
According to ZeroHedge, for the first time since March, the national savings rate in the United States went up. Ostensibly, consumers are trying to live within their means as the savings rate jumped from 5.5 percent to 5.7 percent.
Meanwhile, year-over-year (YOY) personal spending trends have slowed down.
This could have negative effects on the upcoming gross domestic product (GDP). With the GDP’s first- and second-quarters advancing by about one percent, the third-quarter could post lackluster numbers as well. The July-to-September period is huge because this is when one of the biggest shopping seasons take place: back to school.
It certainly won’t be good for Barack Obama’s legacy and Hillary Clinton’s campaign when these Q3 numbers are released just before the presidential election.
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