Discover® U.S. Spending MonitorSM Consumer Confidence Remains Flat in May
08 Giugno 2011 - 1:00PM
Business Wire
Consumer sentiment remained stagnant in May, as both spending
expectations and economic confidence saw little change from the
prior two months, according to the Discover U.S. Spending Monitor.
The Monitor, a poll of 8,200 consumers tracking economic confidence
and spending intentions on a daily basis, rose 0.1 to 89.5 in May.
That figure is down from this year’s high of 93.1, reported in
January, and reflects the pressure that high gas prices and
continued high unemployment are putting on budgets and
finances.
That pressure is shown in the declining percentage of consumers
who expect to have money left over at the end of the month. A full
42.4 percent say they would not have money left over after paying
their bills this month, a jump of 2.5 points from April and the
highest number reported this year. Conversely, the number of people
who said they would have money left over at the end of the month
was at its lowest point since March 2010, coming in at 45.7
percent. That is a drop of 1.5 points from April.
Against this backdrop, nearly 57 percent of consumers rate the
economy as poor, up nearly 2 points from April, and, for the third
month in a row, more than half of consumers say economic conditions
in the country are getting worse. In addition, reflecting the
higher costs for fuel and food, May is the third month in a row
that more than 50 percent of consumers expect higher household
expenses. To offset those expenses, for the fifth time in the last
six months, more than half of consumers say they will spend less on
discretionary items.
The Monitor was flat for consumers’ attitudes about their
personal finances as well. Twenty-six percent rated their personal
finances as good, a slight increase from April, while the
percentage of consumers who rated their finances as poor dropped to
23.4 percent, down from 24.7 percent in April.
“Higher costs for fuel, food and other household expenses are
putting stress on American families, and continued high
unemployment means there may not be much relief in sight,” said
Julie Loeger, senior vice president of brand and product management
for Discover. “With fewer people expecting to have money left over
after paying bills, we know that discretionary spending – which
helps fuel our overall economy – may continue to lag.”
May’s Monitor Reflects Differing Attitudes Among Household
Income Levels
The results of May’s Monitor reflect different attitudes between
households that make more than $75,000 a year and those that earn
less than $40,000 annually.
For households that earn less than $40,000 annually, 60.2
percent said in May that they would not have money left over after
paying bills at the end of this month. That figure is a record for
the 4-year-old Monitor and a jump of 7.2 points from April.
At the same time, 77.7 percent of households making more than
$75,000 annually said in May that they would have money left over
after paying bills, which is the second-highest figure ever
recorded in the Monitor and a 4.2 point jump from April. The only
time sentiment for that question was higher was in August 2007,
when 78.1 percent of those households said they would have money
left over after paying bills.
Other differences between the two households:
- For those that make more than $75,000
annually, 26.2 percent plan to spend more next month on household
improvements, nearly double the amount, 13.7 percent, of households
that make less than $40,000 a year.
- Nearly 20 percent of households that
make more than $75,000 annually plan to spend more next month on
major personal purchases, compared to 14.4 percent of those in
households that earn less than $40,000 annually.
- Of households earning more than $75,000
a year, 49.2 percent rate the U.S. economy as poor, compared to
60.9 percent of households making less than $40,000 who feel that
way.
Less Savings, More Spending on Certain Items
May’s Spending Monitor reveals another record, as the percentage
of consumers who said they planned to put less money into savings
or investments next month grew to 42.3 percent. That figure is a
jump of 2.5 points from April. At the same time, the percentage of
people who plan to save or invest more next month dropped to 8.7
percent, the lowest figure since June 2010.
Despite the record number of consumers planning to save or
invest less in the month ahead, consumers spending intentions in
certain areas inched upwards in May:
- Home Improvement: 17 percent of
consumers plan to spend more in this category, compared to 16
percent in April.
- Discretionary Entertainment: 11 percent
of consumers said in May they would spend more in this category, up
3.1 points from April. However, 52.7 percent of consumers still
plan on spending less in this category, virtually unchanged from
last month.
- Major Personal Purchases: 15 percent of
consumers plan to spend more on these purchases, an increase of
nearly 2 points from April.
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 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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