Friday, January 30, 2009

The Non-Premature Death of the U.S. Consumer

Paul Kedrosky has captured some great statistical data from about how the average U.S. consumer is faring. In a nutshell - plain horrible.

Straight from the horse's mouth (Aaron Patzer, CEO of Mint):

From August to December, the average savings account was halved to $5,500. Fortunately, credit card debt remained roughly constant, but investments declined by 24%, while loans (mortgage, HELOC, student loans, and personal loans) increased by 11%.

… But what the data, the hard facts, mean for you – if you run a consumer business – is that your customers are spending $400 less each month than they were a year ago, have burned through half of their savings, and on average have taken on an additional $5k in debt.

Here we toast to the U.S. consumer... his insane spending habbits shall be missed.

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Anonymous said...

Graph should include value of real estate, or is that buried in Investments?