 One way to gauge how things are going in your city, state, or the whole country generally, can be found through surveying individuals. While results can vary due to sample size/logistics, this survey is not that hard to rely on. While the government here in the U.S. was reluctant to call a recession, the sentiment on the street told us long ago that we were in recession even before Warren Buffett said so! Good Better than half (57%) of U.S. respondents still say they'll spend less over the next 90 days than they did a year ago – but that's 3-pts better than in the December survey. Another 13% say they'll spend more – 2-pts better than previously. Economy Respondents were also queried on their current impressions of the economy, and once again – while things still look bad – they don't appear quite as awful as they did in December. A total of 12% think the economy will improve in the next 90 days – which is a notable 3-pts better than in December. And while 56% think the economy will worsen over the next 90 days – that's still a significant 10-pts better than the December low.
Among those U.S. consumers who say they're spending less, Reduced Income (38%; up 1-pt),Saving More Money (41%; up 2-pts) and Reducing Debt (36%; up 3-pt) are the top reasons why. Over the past 6 months, the percentage saying they're spending less in order to save more money has skyrocketed from 18% to 41%, and the percentage saying they're reducing debt has jumped from 24% to 36%. Bottom Line For the first time since May 2008 we're seeing signs of a tiny spending uptick. Moreover, there's an improvement in consumer sentiment and expectations going forward. These improvements, however, are tenuous at best. Just as the May uptick was in part due to heightened expectations over the tax stimulus package, the current outlook may have much to do with the anticipation surrounding the new Administration's economic stimulus plan. Reduced inflation – and particularly lower gas prices – is another likely contributor to this survey's modest signs of stabilization. These survey results were tabulated by the ChangeWave Research. Comment Below If your thoughts differ or you would like to give us a deeper thought, please comment below. |
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