Although the powers that be say things are getting better, the average Joe still isn’t buying it (no pun intended). According to the latest Gallup Economic Weekly, the urge to splurge remains lacking (italics mine):

Self-reported consumer spending was down more than 20% in each of the last three weeks from last year’s depressed weekly comparables. At the same time, Gallup’s Economic Confidence and Job Creation Indexes were essentially unchanged.

…

Consumer Spending fell slightly last week, as self-reported daily spending in stores, restaurants, gas stations, and online averaged $73 — down $2 from the previous week. More importantly, it was down 22% from last year’s comparable, when average spending was $94 per day. For the third week in a row, consumer spending has trailed last year’s anemic spending levels by more than 20%. While it remains unclear how consumers’ spending is being divided between Christmas gifts and other discretionary spending for such things as travel, entertainment, and eating out, consumers are reporting a significant decline in their perceived spending during recent weeks. (This week’s consumer spending level may be slightly overstated, as Gallup did not interview on Tuesday and Wednesday last week, days on which spending estimates are typically lower.) Even with this year’s much better inventory controls, many retail merchants may be feeling the need to unload goods as Christmas approaches, providing good buying opportunities for consumers with money yet to spend.

Otherwise, is it me, or is today’s renewed pledge by the Federal Reserve to keep interest rates “exceptionally low” for “an extended period,” even though policymakers (including Time magazine’s “Person of the Year”) believe the economy is strengthening, something of a non sequitur?

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