I don't know about you, but I've been spending less than I did last year.
In fact, my family has had to trim out budget by quite a bit given the employment outlook lately.
We're looking for cheaper entertainment options, not eating out as much, clipping coupons . . . even growing our own vegetable garden to save money.
But there's a bit of false hope in the surging equity markets. Who doesn't like to see their retirement savings growing each day. But is this encouraging some to spend more? Or are they expecting a quick return to the days of old, when unemployment was under 5%?
I'm baffled. Earnings season is again surpassing all expectations. Sales and profits are surging across the board.
I'm confident this can not continue. There will be a day of reckoning this year, when the reality hits these consumers that we're still in for a long-haul and newly adopted frugalities will remain a way of life.
Analysts are forecasting double digit growth in earnings for the current quarter (ending June 30). I think this is the quarter that will disappoint.
Here's some supporting survey data:
Consumers to put spending on long-term diet
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