U.S. Millennials Starting To Spend More: Poll

by Matthew Rusling
While spending has been down among Americans since the economy took a nose dive in 2008, the U.S. millennial generation is expected to ramp up its spending in the coming years, found a Gallup poll released Wednesday.
Millennials comprise nearly 30 percent of all U.S. spending. And that number is expected to rise in the years ahead, signaling that perhaps the group, which has suffered under the weak economy, may see better times ahead, Gallup found.
The demographic has in recent months proven its importance as a voting bloc, as Democratic challenger Senator Bernie Sanders has given front-runner Hillary Clinton a run for her money, mostly on the support of millennials.
That is mainly because the anti-establishment Sanders' message of income inequality has resonated with millennials, who have fared poorly since the 2008 economic nose dive.
Among Americans overall, spending has declined since 2008 -- the year of the financial crash.
Currently, the millennial generation spends an average of 85 U.S. dollars per day and accounts for 28 percent of all daily per-person consumer spending in the United States -- a number that is expected to climb as high as 35 percent over the next 15 years.
The U.S. economy has been recovering at a slow pace over the past eight years, with young adults' spending hit hardest by this lethargic progress. In 2008, Americans aged 19 to 35 were spending an average of 98 dollars per day.
Perhaps because of their lower wages and higher amounts of student debt, millennials have been unable to catch up to 2008 spending levels, while older generations are less likely to have those constraints, Gallup found.
However, there is positive spending momentum among millennials. Across all generations, fewer than four in 10 Americans say they are spending more than they were a year ago, but a larger proportion of millennials, at 42 percent, say they are spending more.
It is worth noting, though, that Americans -- millennials included -- are spending more on things they need than on things they want.
More millennials report spending more on nondiscretionary categories such as groceries, at 52 percent, utilities, at 37 percent, and healthcare, at 35 percent; while fewer are spending more on discretionary purchases such as leisure activities, at 33 percent, travel, at 26 percent, and dining out, at 26 percent.
The fact that millennials are spending more on leisure activities compared to a year ago suggests the group might be starting to free up their bank accounts and pay for non-essentials, Gallup said. (Cihan/Xinhua)