CHART OF THE DAY: Consumer Strength Isn't All It's Cracked Up To Be

button more charts
button chart prev
button chart next

Economists have been touting consumer strength as the economic recovery has appeared to gain steam in the last few months.

But there’s a good reason to believe this development isn’t all it’s cracked up to be.

According to research from Morgan Stanley global strategist Gerard Minack, the U.S. government is actually “paying out as much in benefits as it receives in taxes from households.”

And analysts already concerned about a fiscal cliff ahead around the start of 2013 when the government dramatically cuts back expenditures, the power of the consumer might be much weaker than the numbers would suggest.

chart of the day, us government is paying out as much in benefits as it receives in taxes from households, may 2012

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.