’s Greg McBride Talks Consumer Spending's analyst explains why consumers are leery

In a previous article, we discussed’s study on how more consumers are cutting back on their spending. took a moment to sit down with the financial education website’s chief financial analyst, Greg McBride, CFA for more insight. Here’s what he had to say. Why do consumers feel a need to cut back all of a sudden?

Greg McBride: Sustainable growth in household income is the missing ingredient from this economic recovery and the leading culprit for why consumers are holding back on monthly spending. Generally, do you think consumers are still worried about the economy?

McBride: Worries about the economy have dissipated somewhat over the past year while consumers’ desire to forego additional spending in order to save more has increased. Declining gasoline prices are a welcome relief to households still burdened by tight budgets. But the relief is modest, amounting to less than $20 per month for the typical driver.

For more on this topic, see the article Consumers Cut Back on Spending.