Discover® U.S. Spending MonitorSM Rises 2.3 Points in February
03 Marzo 2010 - 1:00PM
Business Wire
The Discover U.S. Spending Monitor rose 2.3 points in February
to 87.5 (based out of 100), as the economic outlook among consumers
improved and discretionary spending intentions stabilized. A
Monitor-low 35 percent of consumers are concerned about additional
expenses or an income shortfall in the month ahead, while more
consumers are expecting to have money left over after paying
monthly bills.
There was no improvement this month in consumer attitudes toward
their personal finances. While discretionary spending intentions
have stabilized, there is little indication consumers are planning
to increase spending in the months ahead.
Consumer Spending Intentions Stabilize; Monitor-high 57%
Percent Plan to Keep Spending Intentions Flat
February saw consumer spending intentions stabilize after months
of cutbacks. A Monitor-high 57 percent planned to spend the same
amount of money in the month ahead as they did in February,
breaking the previous high by 3 points. Discretionary spending
intentions also leveled off after months of cutbacks. In the last
two years, February marked only the third month in which all
discretionary spending categories surveyed showed less than a
majority of consumers planning to spend less.
However, rather than increase spending, consumers plan to keep
their discretionary spending intentions the same. Forty-one percent
expect to spend the same in March as they did in February on
discretionary items like going out to dinner or the movies, a
4-point increase. Thirty-three percent plan on spending the same as
the prior month on home improvement purchases, also a 4-point
increase, and 38 percent plan on spending the same on major
purchases like a vacation, a 3-point increase. A majority of
consumers even expects no changes in their savings and investing,
52 percent, and spending on household expenses like gas and
groceries, 62 percent.
“After months of cutbacks, we’ve seen two months in a row now in
which consumer spending intentions appear to have stabilized,” said
Julie Loeger, senior vice president of brand and product management
for Discover. “Consumers seem to be comfortable as to where they
are in terms of spending.”
Monitor-low 35% of Consumers Concerned About Added Expenses,
Income Shortfall
Consumers also were more comfortable with their budgets in
February. Just 35 percent of consumers are expecting an added
expense or income shortfall in the month ahead, a Monitor low,
while nearly half, 49 percent, are not expecting one. More
consumers in February, 48 percent, also were confident they would
have money left over after paying monthly bills versus January, 47
percent. On a less positive note, this was the 11th straight month
this number has remained below 50 percent. Of those who do have
money left over, 69 percent said they would have the same money
left over as the previous month, a 3-point increase.
Fewer Consumers Feel Economic Conditions Are Getting Worse,
Views on Finances Unchanged
While a majority of consumers, 57 percent, continue to rate the
economy as poor, there was a decrease in the number of consumers in
February who felt economic conditions were getting worse. Overall,
46 percent felt the economy was deteriorating, a 3-point decrease
from January. Twenty-nine percent felt economic conditions were
improving, a 2-point increase from the prior month.
Consumers’ financial outlook remained unchanged in February.
Forty-seven percent feel their finances are getting worse, the same
as last month.
“Despite a little improvement in economic sentiment, it was not
enough to improve consumer attitudes about their finances,” said
Loeger. “However, the Monitor has shown in the last couple of
months an increase in the number of consumers balancing their
budgets and having money left over. If this trend continues, it
hopefully will give consumers some financial confidence.”
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 direct banking and
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 personal and student loans, online savings
accounts, certificates of deposit and money market accounts through
its Discover Bank subsidiary. Its payment 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 more than 185 countries and territories. For more
information, visit www.discoverfinancial.com.
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