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BizReport : Ecommerce archives : September 09, 2011

Despite BTS, consumer spending down in August

Kids may be outfitted for school, but those spending on back to school (BTS) likely cut back in other areas according to a new Gallup Poll. Researchers found that overall spending in the US declined by about $5 for the month of August - in the heat of BTS shopping sprees.

by Kristina Knight

July spending, according to the Gallup poll, was at $74 per day while August per-day spends declined to $68, still up Year over Year (YoY) when consumer's spent about $63 per day. It is interesting to note that all income brackets showed some decline in spending. Upper income families spend about $10 less from July to August while lower and mid-range income families spent $4 less.

What does this mean for retailers?

The drop in spending is likely a reflection on consumer's economic confidence. In a month when politicians bickered of spending and debt limits and the country came close to defaulting on loans, the public cut back on their spending.

"While the government's announcement that zero net new jobs were created in August made major headlines over the Labor Day holiday, Gallup's data suggest an even more dire jobs situation. Not only is unemployment likely higher than the government reports, but underemployment increased to 18.5% at the end of August. With so many Americans underemployed, it seems likely that consumer spending will continue to decline," was written in the repot.

To help save a little green, consumers turned to clipping and printing coupons, finds Scarborough Research. In August they reported nearly 33% of US adults use grocery coupons each week, with most clipping them from newspapers and inserts or printing them via computer.

Tags: commerce, consumer spending, ecommerce, Gallup Poll, Scarborough Research, spending trends

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