Consumer Spending: Some Starbucks Humor
This Ellen Show segment with Dennis Quaid at Starbucks was hilarious. Afterwards, for an economic life connection, we can relate it to consumer spending.
Starbucks just reported its second quarter fiscal year 2013 earnings and said that their US customer traffic was up. When Starbucks refers to more sales, we can think of the single store that the Ellen Show visited or the 11,100 cafes it runs in the US. We can then step beyond to the 2.5% increase on an annualized basis of the US GDP. Representing close to 70% of the GDP, consumer spending for services and goods like those produced by Starbucks has been the fuel that propels US economic growth.
Sources and Resources: For more on Starbucks’ earnings, you might enjoy a transcript of their conference call or this Bloomberg summary of their 2nd quarter results. As a complement, the St Louis Fed consumption expenditures graph (above), the GDP press release and this summary provide a broader view.