US Survey Shows Consumer Spending Slipping

As Americans head to the malls this holiday shopping season, they are less optimistic on the economy than they were a year ago, and that could depress their spending plans.

The CNBC All-America Economic Survey finds that just 22 percent of the public sees the economy improving, a 5-point drop from more buoyant levels a year ago. Key economic indicators gauged in the survey, including views on whether home prices and wages will rise next year, weakened at the start of the Christmas season.

Just 35 percent of those surveyed think their wages will increase in the coming year, down 5 points from a year ago. And 36 percent see their home price rising in the next 12 months, down from 40 percent a year ago.

The nationwide poll of 800 Americans was conducted Nov. 29 to Dec. 2 and has a margin of error of 3.5 percentage points.

Views on the current state of the economy remained largely unchanged, with a quarter of respondents gauging it to be good or excellent and 73 percent saying it’s just fair or poor, on par with last year. But the combination of less optimistic views on the economy, wages and home prices suggested less spending this holiday season.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza