For three consecutive quarters, the American Customer Satisfaction Index (ACSI) has been declining, and the recent 0.7% drop in the third could indicate weak spending growth for the important fourth quarter of the year. The index reading at the end of the third quarter was the lowest since early 2011.

According to ACSI, there are two major factors that determine how much consumers are spending: expected satisfaction from a purchase and the ability to spend to make the purchase. The research firm says that the latter has improved somewhat, but that the former has “gotten worse — and continues to deteriorate.” On that basis, ACSI forecasts fourth-quarter spending to rise 1.8% to 2.0%, a pace it says is “too sluggish for a healthy economy.”

Lower gasoline prices are supposed to put more cash in consumers’ pockets and make them more willing to spend, but so far, at least according to ACSI, the ability to spend is not be matched by consumers actual spending.

ACSI’s founder and chairman said:

The US economy needs more consumer demand to shake off these seemingly persistent doldrums. Low interest rates, some inflation and wage growth would all help, but consumers also need a reason to buy. Their satisfaction matters not only to them as individuals, but for the economy as a whole.

Consumer revolving credit has also slowed. According to last week’s report from the Federal Reserve, revolving credit grew just 1.3% in the United States in October, compared with growth of 6.2% in non-revolving debt, such as auto purchases and student loans. Americans added just $1 billion to their collective credit card bill in October.

ACSI contends that because Americans are dissatisfied with the quality of goods on offer they are not buying those goods. One could argue that if Americans felt better about the economy they would be a little more willing to buy on credit. It is just possible that the economic woes the country has weathered for the past seven years have made Americans a little more aware of job security — or the lack of it — and the need build up savings for a rainy day that never seems to be very far off any more.

ALSO READ: Consumer Sentiment Upbeat on Job, Income Expectations

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