Economic Uncertainty Surges Along With Consumer Spending & Debt Load

by Mac Slavo | Sep 16, 2019 | Emergency Preparedness, Experts, Forecasting, Headline News | 9 comments

[dipl_text_animator animated_text=”Do you LOVE America? | Do you WANT our borders secured? | Don’t miss on the latest news | Subscribe and stay informed!” animation_layout=”zoom” animation_time=”740ms” animation_hold=”5010ms” _builder_version=”4.24.0″ _module_preset=”default” global_text_settings_text_align=”center” global_text_settings_text_color=”#FFFFFF” global_colors_info=”{}”][/dipl_text_animator]
[contact-form-7 id=”6521033″ title=”Article Subscribe”]

Share

Even though the signs of problems are visible in the economy, consumer spending surged in the month of August.  Americans upped their spending by 0.4% by buying cars and making purchases online.

According to Breitbart News, this uptick was more than economists had expected. Economists had forecast a more modest 0.2 percent gain. The previous month’s gain, boosted in part by Amazon’s Prime Day sales, was revised up to 0.8 percent from 0.7 percent.

Online sales, were expected to drop off steeply in a kind of post-Prime Day hangover, were surprisingly strong, rising 1.6 percent. Sales at home and garden centers were also robust. Auto sales jumped 1.8 percent. These can be volatile month-to-month. But purchases of big-ticket items like cars are generally a sign of consumer confidence and typically fall early in a slumping economy.

But it looks like this surge in consumerism was paid for with debt. Americans piled up $35.6 billion in credit card debt last quarter, an all-time record, according to the Kiowa County Press. “Americans began 2019 owing more than $1 trillion in credit card debt,” Alina Comoreanu, Wallethub senior researcher, said. “Although the forecast initially appeared brighter, thanks to consumers repaying $38.2 billion in credit card debt during Q1 2019, poor second-quarter results nearly erased that effort.”

“Credit card debt statistics speak to the financial health of American households,” Comoreanu added. “They can also foreshadow over-borrowing bubbles, changes to lending standards, and other trends with the potential to impact our wallets.”

The average household currently owes $8,602 in credit card debt, according to an analysis by Wallethub. Based on these numbers, we can deduce that much of the increase in spending is not coming from an increase in income, rather a desire to buy now and pay later. “Our overleveraging problem has been trending in the wrong direction for some time now, and the latest data indicate we’re truly entering dangerous territory,” WalletHub CEO Odysseas Papadimitriou said in response to the findings.

[the_ad_group id=”24571″]

URGENT ON GOLD… as in URGENT

It Took 22 Years to Get to This Point

Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

Free Exclusive Report

The inevitable Breakout – The two w’s

[email-download download_id=”345496″ contact_form_id=”19fc5e7″]

Related Articles

[the_ad_group id=”30340″]

Comments

Join the conversation!

It’s 100% free and your personal information will never be sold or shared online.

0 Comments

Submit a Comment

Commenting Policy:

Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.

[dipl_ajax_search search_placeholder=”Article Search” display_fields=”on|on|off|off” search_result_box_bg_color=”#870404″ search_icon_font_size=”20px” search_icon_color=”#870404″ loader_color=”#870404″ _builder_version=”4.17.4″ _module_preset=”default” search_result_item_title_font_size=”14px” search_result_item_excerpt_font_size=”11px” border_color_all_form_field=”#870404″ global_colors_info=”{}”][/dipl_ajax_search]

[the_ad_group id=”30343″]

[the_ad_group id=”30344″]

[620studio_custom_posts post_type=”report” columns=”1″ limit=”1″ category_id=”23503″ caption=”no” date=”no” title=”no”]