Economic Confidence Declines in August, According to the Discover U.S. Spending MonitorSM
05 Settembre 2012 - 1:00PM
Business Wire
Economic concerns and anticipation of continued higher expenses
pushed the Discover U.S. Spending Monitor to its lowest level of
the year in August, declining 0.7 points from July to 88.6. The
Monitor is a 5-year-old daily poll tracking economic confidence and
spending intentions of nearly 8,200 consumers throughout the month.
August marked the third consecutive monthly increase for those
believing the economy is getting worse.
Highlights of Discover U.S. Spending Monitor Results
June July
August 2012
2012 2012 Discover U.S. Spending
Monitor Index 90.7 89.3
88.6 U.S. Economy Improving 29%
28%
26% Personal Finances Improving
23% 23%
20%
Economic Rating at 9-Month Low
While the number of respondents reporting the U.S. economy as
poor leveled out from June to July, 56 percent of respondents
ranked the economy as poor in August. This was the highest level
since January 2012.
- Respondents with children who view the
economy as poor increased 7 percentage points from July to August
to 58 percent. Respondents without children viewing the economy as
poor remained unchanged at 54 percent.
- There was an 8-percentage point
increase to 50 percent in the number of consumers making $75,000 or
more viewing the economy as poor. This compared with little change
for those making between $40,000 and $75,000, poor rating declined
1 percentage point to 53 percent, and those making less than
$40,000, poor rating increased 1 percentage point to 62
percent.
- Respondents believing the economy is
getting worse increased for the third straight month to 55 percent,
up 2 percentage points from July and 11 points from March
2012.
- In August, 54 percent of women believed
the economy was getting worse, an increase of 4 percentage points
from the previous month, while 56 percent of men had the same
belief, a decline of 1 percentage point.
Consumers Believing Their Personal Finances are Getting Worse
Reaches 10-Month High
- Fifty-one percent believe their
personal finances are getting worse, an increase of 2 percentage
points from the previous month. This is the highest level since
October 2011 when 55 percent of respondents felt their personal
finances were getting worse.
- However, there was little change in how
respondents currently rate their personal finances in August, with
34 percent rating their personal finances as good or excellent,
equal to July, 38 percent rating them as fair, down 1 percentage
point from July, and 25 percent rating them as poor, also equal to
July.
High Food and Gas Prices May be Affecting Discretionary
Spending Intentions
Of all respondents, 31 percent plan to spend more next month (an
increase of 4 percentage points from the prior month). This is the
highest number reported for August since 2008 and may reflect
steadily rising food prices and record-high national average gas
prices during the month.
- For all respondents, 44 percent expect
to spend more on household expenses such as gas and groceries in
the next month, an increase of 6 percentage points from July and
the highest number reported for August since 2008.
- 49 percent plan to spend less on going
out to dinner or the movies in the month ahead, an eight-month high
and up 2 percentage points from July.
- 48 percent plan on spending less on
home improvement purchases, up 1 point from July.
- 46 percent plan on spending less on a
major purchase such as a vacation, a 2-point increase from
July.
Consumers were asked for the first time in August how much they
plan to spend on back-to-school shopping, with nearly two-thirds
indicating they plan to spend less than $250 this year.
Specifically, 35 percent plan to spend less than $100, and 30
percent plan to spend between $100 and $250.
Compared to last year, 38 percent plan to spend the same on
back-to-school shopping. Thirty-two percent plan to spend less than
they did a year ago, and 29 percent plan to spend more.
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 (http://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 home loans, private student loans, personal
loans, online savings accounts, certificates of deposit and money
market accounts through its direct banking business. 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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