Its spending rose considerably faster than consumer outlays.
"Wealth by itself now appears to explain about one-fifth of the total level of consumer outlays," the chairman said.
Personal consumption expenditures, the government's calculation of total consumer outlays, rose in each of the last three quarters, particularly in the most recent, in disregard of the recession.
The report, by Citigroup, finds that "consumer outlays (concerts, subscriptions) are at all-time highs", returning to a peak after a decline from 2006-10.
At the same time, all categories of domestic spending, including consumer outlays, were somewhat weaker in the summer than in the first half of the year.
As President-elect Barack Obama and his economic advisers recognize, countering a deep economic recession requires an increase in government spending to offset the sharp decline in consumer outlays and business investment that is now under way.
Consumer outlays are likely to erode next year, however, as the enthusiasm from falling gasoline prices wears off and borrowing against one's home becomes more difficult, Mr. Curtin says.
Certainly, there was a great deal of spending on such products, but it does not appear that such spending is what drove rising consumption or increased consumer indebtedness.Instead, as James Surowiecki reminds us, rising consumer outlays largely went to things like housing, where costs have steadily increased, and health care.
But the Top 5 percent in income earners — those households earning $210,000 or more — account for about one-third of consumer outlays, including spending on goods and services, interest payments on consumer debt and cash gifts, according to an analysis of Federal Reserve data by Moody's Analytics.
Rising gas prices have taken a toll on consumer outlays.
