Despite an uptick in the economy, Americans are holding on to their money more than ever. The latest Gallup Poll shows the saving-spending gap is one of the widest since 2001 -- 62-to-34 percent.
“People are spending more, but if you look at the percentage growth rates and you look at the percentage of income and those types of things, its still not what it was during the really go-go days of the housing bubble back before the recession,” says Texas state economist Ray Perryman.
Though Texas has nearly tripled the number of jobs it lost during the recession, a vast majority are still pinching their pennies rather than spending on new appliances, cars or new homes.
“We still have a lot of people who are just cautious, they were burned really badly during the recession, some of them are just recovering in terms of home values and things of that nature,” Perryman tells KTRH News. “So you still have a lot of people there who think that saving is more important the spending right now.”
Southerners in general are spending less than those in other areas of the country.
However, the Gallup Poll showed regardless of income, education, race or age, six in ten Americans are still wary of which direction the economy is headed.
“I think we're at a good place in the economy right now, although I'd still like to see a bit more momentum,” says Perryman. “In terms of a time frame, if you're talking about investments, I think you should look very long-term and think about retirement.”