Perhaps it is the last hurrah of the Trump post-election euphoriabut according to Gallup there were two notable development in February.
First, Americans’ daily self-reports of spending climbed to an average of $101 in February. This, Gallup reports, was the highest average for the month of February since 2008, when spending averaged $106. The latest monthly average is up $13 from January’s figure, but still lower than December’s holiday-influenced $105.
Gallup notes that this is the seventh daily spending average of $100 or more that Gallup has recorded for any month over nine years of tracking Americans’ spending reports, and the only one in February since 2008. During that year – but before the global financial crisis in the fall – Americans’ monthly average spending exceeded $100 four times.
What makes the Gallup report even more surprising were previous reports that due to a delay in the payment of Tax refunds by the US Treasury, spending would be muted in the past month. The latest data not only refutes this assumption but suggests that the outcome was just the opposite of what many had expected.
Additionally, Gallup observes that since 2008, Americans’ spending in the month of February has generally been similar to their January spending, though it is common to see a slight increase in February after January’s seasonal, post-holiday drop. But the January-to-February increase in 2017 is larger than usual, with this year’s $13 bump outpacing the previous record $9 increases in 2008 and 2014.
That said, the spending spree was not uniform and was mostly thanks to wealthier consumers.The increase in spending was slight — to $73 from $70 in January — among Americans living in households that earn less than $90,000 annually. The increase among higher earners was much larger. Consumers in households earning $90,000 or more annually spent significantly more in February than in January — $168 versus $142. This $26 month-to-month increase is one of the largest Gallup has found for this group in its nine years of tracking.
