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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.
Similar(44)
This a key measure of household spending power and watched closely by the Treasury now the economy is driven largely by consumer outlay.
A new report from PQ Media, a global research company, finds U.S. consumers outlay an average of $1,344.55 per person each year.
Though Russia's economy appears in rude health today from high oil prices, rising consumer spending and government outlays will push both the budget and balance of payments into deficit within two years, economists say.
Rising material and oil prices will divert money that could go into consumer spending or capital outlays.
Unity Marketings measure of luxury consumer spending reveals that outlays have tumbled 19.7%, to $13,151 per person, in the second quarter of 2008, down from $16,384 in the prior year.
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