Growing Economic Concerns among Women Leads to 3.2 Point Drop in the Discover® U.S. Spending MonitorSM
04 Novembre 2009 - 12:00PM
Business Wire
The Discover U.S. Spending Monitor fell 3.2 points in October to
85.8 (based out of 100). The decline was primarily due to a rising
number of consumers concerned about the state of the economy.
Overall, 56 percent of consumers rated the economy as poor, a
4-point increase from September. Forty-six percent of consumers
felt economic conditions were getting worse, a 3-point rise from
September and the first increase reported since July.
Concern over personal finances also rose in October, as 27
percent rated their finances as poor, a 4-point increase from
September. Forty-nine percent felt their finances were getting
worse, a 1-point increase from September.
The decline in economic and financial confidence was greatest
among women, which may be a concern for retailers heading into the
holiday shopping season. The Monitor has shown that spending
intentions are tied to economic and financial confidence, and so
far, numbers suggest consumers, especially women, are anticipating
cutting as much if not more of their holiday spending as they did
last year.
Women Decidedly More Pessimistic Than Men about the Economy,
Both Share Similar Views about Finances
In October, 58 percent of women rated the economy as poor, a
Monitor record 9-point increase from September. Men rating the
economy as poor actually dropped a point to 53 percent. Forty-seven
percent of women also said the economy was getting worse, a 3-point
increase from September, while 44 percent of men felt the same way,
a 2-point increase from the previous month.
Women weren’t able to find comfort in their financial situations
either. Twenty-eight percent rated their finances as poor, a
5-point increase from September. However, women who felt their
finances were getting worse remained unchanged in October at 49
percent. More men also rated their finances as poor, 25 percent
versus 23 percent in September. But more men felt their finances
were getting worse, 48 percent versus 45 percent in September.
“The Monitor has always shown that women tend to be less
optimistic than men about the economy and their finances,” said
Julie Loeger, senior vice president of brand and product management
for Discover. “But the record jump in the number of women rating
the economy as poor and the pessimism over the current state of
their finances may indicate a weak holiday shopping season
ahead.”
Nearly Two-thirds of Consumers Anticipate Spending Less on
Holiday Gifts
Retailers were hoping a better economy may boost holiday
spending this year, but while government reports showed the economy
gaining some traction in the third quarter, consumers’ holiday
spending intentions may be disappointing to retailers. The Monitor
asked nearly 5,000 consumers whether they planned to spend more,
less or the same as last year on holiday gifts. Nearly 63 percent
said they planned on spending less this year, the same number
reported a year ago. Last year was one of the worst holiday
shopping seasons on record. Another concern is higher numbers of
women (65%) than men (60%) anticipate spending less on holiday
gifts this year.
Anticipated spending on household expenses like gas and
groceries rose for the first time in four months, not unexpected
with the holidays approaching. But with household expenses expected
to rise, more consumers plan to cut overall discretionary spending
to compensate. Fifty-two percent plan on cutting purchases like
going out to movies or restaurants, a 2-point increase from last
month. Likewise, there was a 2-point increase to 52 percent of
consumers who expect to cut home improvement spending. And 51
percent are planning to cut major personal purchases like vacations
in the month ahead, up a point. Even savings wasn’t immune, as 40
percent of consumers plan to save or invest less in November, a
2-point increase.
Monitor-low 44% Expect to Have Money Left Over After Paying
Monthly Bills
For the seventh straight month, less than a majority of
consumers have money left over after paying monthly bills. In
October, a Monitor-low 44 percent planned on having money left
over, a 3-point drop from September. Furthermore, 41 percent were
expecting an added expense or income shortfall in the month ahead,
a 3-point rise from last month and the highest since December
2008.
“The Monitor’s numbers suggest that more and more consumers are
having a hard time balancing their budgets,” said Loeger.
“Consumers have little choice but to cut discretionary spending to
compensate, even if it means less presents for family members this
holiday season. Consumers simply don’t seem to have the economic or
financial confidence right now to reverse course, which is not good
news for retailers.”
For more Discover U.S. Spending Monitor survey data, charts and
information, please visit
www.discoverfinancial.com/surveys/spending.shtml.
About Discover U.S. Spending Monitor
The Discover® U.S. Spending MonitorSM is a monthly index of
consumer spending intentions and capacity that is based on
interviews with a random sample of 8,200 U.S. adults conducted at a
rate of 275 per night. In addition to spending, the survey asks
consumers their opinions on the U.S. economy and their personal
finances. The Monitor began in May 2007 with a base index of 100.
Surveys are conducted by Rasmussen Reports, an independent survey
research firm (www.rasmussenreports.com).
About Discover
Discover Financial Services (NYSE: DFS) is a leading credit card
issuer and electronic payment services company with one of the most
recognized brands in U.S. financial services. Since its inception
in 1986, the company has become one of the largest card issuers in
the United States. The company operates the Discover card,
America's cash rewards pioneer, and offers student and personal
loans, as well as savings products such as certificates of deposit
and money market accounts. Its payments businesses consist of
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in 185 countries and territories. For more information,
visit www.discoverfinancial.com.
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