“It appears — at least to this point — that neither the payroll tax nor the sequester has had a disproportionately negative impact on lower- and middle-income spending as might have been expected. Nor have the gains on Wall Street and in housing values had a disproportionately positive effect on upper-income spending,” Gallup concludes.
It warns that spending could drop as consumers feel a new spike in interest rates that followed a Wall Street reaction to Federal Reserve Chairman Ben Bernanke outlining the eventual end of monetary easing.
Such an increase in interest rates will lower the benefits from mortgage refinancing and hurt those relying on credit card debt to spend. On the other hand, savers and retirees on fixed incomes could benefit and start to spend more, Gallup noted.
Gallup surveyed 13,000 Americans from June 1 to June 27.
Last week, both the Conference Board and the University of Michigan reported bullish consumer sentiment in their monthly indexes.