From Pymnts · PYMNTS · · 1m 10s
Fed Finds Consumer Spending Holding as Confidence Slips
Consumer spending holds steady as confidence drops, high-income households drive spending despite financial strain.
In brief
Consumer spending holds steady as confidence drops, high-income households drive spending despite financial strain. The Fed's Beige Book shows consumer spending remains stable but confidence declines, with high-income households driving spending while many report savings covering less than three months. Originally…
Federal Reserve Beige Book
The Federal Reserve’s October Beige Book found economic activity increased in nine of its 12 districts.
Consumer Spending Holds Steady
Most districts reported little or no change in consumer spending, with five of six auto sales districts showing flat to modestly lower sales.
High-Income Households Drive Spending
More than half of districts reported consumer spending being driven by high-income households.
Consumer Confidence Drops
The PYMNTS Consumer Expectations Index fell 0.7 points to 54.1, its second consecutive monthly decline.
Savings Cover Less Than Three Months
51.8% of consumers said their savings would support their current lifestyle for three months or less if income stopped.
Financial Resilience Weakens
The Personal Financial Resilience subindex, including savings, debt, and day-to-day money management, remained nearly unchanged.
Economic Conditions Deteriorate
The Macroeconomic and Buying Climate subindex fell 2.2 points to 45, indicating declining confidence in economic conditions.
Here's the gist
The Fed's Beige Book shows consumer spending remains stable but confidence declines, with high-income households driving spending while many report savings covering less than three months.
