Fed Says Spending Down $7,300 per Person From ‘Bubble’ Pace

The 18-month U.S. recession that ended in June 2009 has so far cut spending by more than $7,300 per person, or about $175 a month, from the pace that prevailed during the housing boom, said a Federal Reserve Bank of San Francisco researcher.

The $7,300 figure reflects the period from December 2007 to May 2011, and was calculated by comparing the inflation-adjusted path of consumer purchases to pre-crisis levels, senior economist Kevin Lansing wrote in a paper released today. Per-capita consumption is still 1.6 percent below its pre-recession peak, 42 months after the recession started, he said.