Jul 08, 2013 Quinn Thomas
Oftentimes, heightened levels of consumer spending can lead to additional borrowing activity.
That being said, when short term lenders see a pick up in spending they might want to prepare for an influx of loan applications.
June saw Americans' self-reported daily spending average $90, according to Gallup, which is unchanged from the previous month, but $10 per day higher than the beginning of the year.
Consumers living in the West averaged the highest daily spending at $97, followed by the South, East and Midwest.
Spending levels have been increasing from the beginning of the year as consumers are feeling more confident in the economy. This trend could continue, with The Conference Board Consumer Confidence Index rising to 81.4 in June, up from 74.3 in May.
"Consumers are considerably more positive about current business and labor market conditions than they were at the beginning of the year," said Lyn Franco, director of economic indicators. "Expectations have also improved considerably over the past several months, suggesting that the pace of growth is unlikely to slow in the short-term, and may even moderately pick up."
Should high confidence levels lead to additional spending in the near future, short term lending demand could also pick up.