Household spending in the US is rising steadily. Consumer spending accounts for two-thirds of US economic activity. Extremely low gasoline prices as well as a strengthening labor market are supporting this spending by increasing levels of disposable household income.
Consumer spending is reported monthly by the U.S. Bureau of Economic Analysis.
In December 2014, Americans spent a daily average of $98, up by $3 when compared to November 2014. This is also up slightly from $96 observed in December 2013.
The December 2014 average consumer spending figure is based on Gallup Daily tracking of more than 13,000 US adults via interviews conducted throughout the month. The poll asks Americans to estimate the total amount they spent yesterday in stores, restaurants, gas stations, or online. Home and vehicle purchases or normal monthly bills are excluded from this analysis.
Americans with annual household incomes of $90,000 or more an average of $177 each day in December.
Economists believe 2015 will bring further spending gains and growth of around 3%. Inflation-adjusted GDP (gross domestic product) is expected to grow by 3% across the four quarters of 2015.
The spending increase reported for December could be a positive sign for casino stocks such as Las Vegas Sands (LVS), MGM Resorts International (MGM), Penn National Gaming (PENN), Pinnacle Entertainment (PNK), and Wynn Resorts (WYNN). It could bode well for the VanEck Vectors Gaming ETF (BJK) that has ~26% exposure to these companies.