Spending was boosted in the Midwest and South as job market conditions have improved at a faster clip than in other regions of the country, according to Gallup’s Job Creation Index.
Although spending was flat in the Midwest and South in June compared with May, year-over-year spending is up sharply in the Midwest and the South.
Bolstered by the improving manufacturing sector, spending in the Midwest has improved from $54 per day in June 2009 to $71 this year, but is still below the $99 recorded in 2008.
In the South, spending averaged $69 per day in June, an increase of $11 from one year ago. However, average spending there remains far below the $105 average of June 2008.
The high cost of energy has likely stymied spending in the South, although the cleanup efforts for the Gulf of Mexico oil spill could offset high energy prices.
Meanwhile, consumers are spending less in the East and West.
Americans in the East reported spending an average of $62 per day in June, down $13 from May and $3 from a year ago. Their spending remains far below the $114 average of June 2008.
The West’s sluggish housing market has continued to suppress spending, which sits at $70 per day in June compared with $97 in June 2008.