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One Third Of Americans Have Cut Back on Spending

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    Bankrate.com senior financial advisor Greg McBride weighs in on consumer spending.

  • Duration 3:06
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This transcript is automatically generated

To that statement from the White House and the president but certainly many of the questions from the reporters once again.

Or over the fiscal -- directed at the president -- looks like -- at this point we're just finding out today pushing a third of Americans.

To cut back up personal spending over the past month that's according to research we just got from Bankrate dot com the senior financial buys or -- with brightest here and Greta what are -- this.

Whether there's been listened -- president most of the questions today we're about the fiscal -- -- look what the president said.

Of my Republican friends you just take the deal.

You're finding that Americans are saying enough is enough I'm holding on some might cash.

But you're right Sheryl -- between we've known for months the businesses have been holding -- they've been holding back on hiring decisions they've been holding back on capital investments.

But now we find out that consumers are holding back one in three Americans say.

That just in the last thirty days they have cut back on their spending.

Specifically because of concerns about the fiscal -- and it's not necessarily -- particulars of tax increases or spending cuts.

As much as it's the macro view.

What happens that this economy goes into a recession that's not the type thing that inspires confidence for people who want to spend and they are as you said -- -- -- So basically all of this again the news media us -- all of the coverage that we're saying for -- but that's booklet that's causing consumers.

To be concerned -- you said it wasn't just about a spending cut your your -- a word about their debt.

There's -- -- financial situation is worse than it was a year ago they feel worse vs last year I mean can we just went to the -- on us.

Well -- we did see a big decline in terms of how people feel about financial security and specifically each of those components job security savings debt net worth.

-- overall financial situation we saw big decline in November and that was after the election was resolved so we have that uncertainty to blame.

-- -- another big decline here in December we're now the lowest point of the year so why this big turnaround from where we were just a couple of months ago.

I think it shows a clear indication that consumers focus has shifted to this fiscal cliff and you know again the statistic that one in three Americans have cut back their spending as a result.

I think -- backs that -- Okay Greg any affair enough again what -- Americans that's a that's a pretty big not Americas and the consumer spending is more than 70% of the US economy -- you yourself Greg.

You've been tracking these numbers for years and consumer behavior were you surprised.

At all by.

The impact of the fiscal -- discussion.

On consumer.

Response consumer spending.

It all carriers and don't discredit it.

While I'm not surprised.

But again I still think one in three is alarming because after we got a very slow growth model along economy.

As you said generates 70% of our economic output.

Just for reference back in 2011 right after the debt ceiling debacle in the -- debt rating downgrade or 40% of Americans at that time said they had cut back on the spending.

And that was a point where we all thought we were headed into a recession.

Well -- the president saying that there's going to be the only -- says a deal I think most Americans are ready for a deal Greg McBride thank you for the new data appreciate it from Bankrate.

Thank you share.

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