Asked to rate the state of their own personal finances, 36% surveyed for the National Restaurant Association’s annual Restaurant Trends described them as only “fair” while 18% said they were “poor.” That’s virtually the same as in 2010, when the economy was just beginning to climb out of the Great Recession.
“This persistent recession is negatively impacting spending,” NRA said, describing consumer spending as “lackluster.”
“In the 21 quarters since the official end of the recession, personal consumption expenditures rose just 12.2% in inflation-adjusted terms, according to the Bureau of Economic Analysis, a until of the Commerce Department.
Just how punk the Obama “recovery” has been comes into stark focus when you realize that during the same period in the three previous recessions, consumer spending increased by an average of 21.8%.
Real spending on “services,” which includes restaurants, rose just 8.8% during the last 21 quarters —
less than half the average 19.6% gain during the previous three recessions.
Even now, a solid majority of American consumers are reluctant to spend, NRA says. Twenty-seven percent say they are “very concerned about the economy and are holding back significantly” while 47% say they are taking a “wait-and-see approach”, holding back somewhat on spending until the economy improves.
What’s really surprising, NRA notes, is that a majority of higher-income households are also cutting back. Among households with income of $100,000 or more, one in five say they are holding back significantly on spending, while 35% say they are holding back somewhat.
This explains why NRA projects table-service restaurant sale this year will grow a dismal 0.6%. But, some might say, when times are tough, people drink more so bars should be doing really well. NRA projects their sales to rise an anemic 1.1%.