Posts Tagged BIGresearch

Economy

With trying times marching on and the economic stimulus package yet to affect those on Main Street, consumer outlook for the future economy dwindles…this month, about two in five (44.6%) indicate they believe the post-recession economy will eventually rebound to previous levels, off from the nearly half (49.7%) who indicated the same back in March.  One in four (26.0%) say the economy won’t rebound, up from the March reading (21.9%), while 29.4% still aren’t sure (v. 28.4%).

Not surprisingly, those focused on needs over wants increases as well…in July, three in five (59.9%) maintain they zero in on the necessities when shopping, up nearly five points from June (55.0%) and on the rise from a year ago (58.1%) as well.

More evidence that consumer spending will endure long-term restructuring: about nine in ten (88.9%) believe the current economic crisis will impact their lifestyles over the next five years…the majority (52.1%) simply plans to consider each purchase more carefully, while almost as many (48.8%) intend to be more price-conscious when buying food and clothing.  Additional plans include sticking to a budget (46.7%), dining out less (45.2%), and not racking up a large amount of credit card debt (42.4%):

Retail/Holiday ’09 Outlook

While the kiddies just begun their summer break, anxious retailers have their sights set on Holiday ’09 – and rightfully so, according to consumers…more than one in three (36.2%) contend that they will spend less this holiday season compared to last, while a paltry 2.7% anticipates spending more and one in four (26.1%) plans to spend the same.  (29.1% say it’s too early to know and 5.8% don’t celebrate the season).

Among those planning to spend less for Holiday ’09, how can we expect these consumers to go about doing this? The majority (69.1%) they will just slash their budgets altogether, while other plans of action include only buying gifts on sale (48.3%), doing more comparison shopping (40.4%), buying for fewer relatives (32.4%), and gifting to fewer friends (30.7%)

Personal/Financial

Relatively affordable pump prices haven’t lured consumers into a false sense of security…three in five (59.0%) contend that gas prices will continue to rise through the beginning of August, while 31.7% anticipates they will remain the same…only one in ten (9.3%) is holding out for a decline.  Drivers are estimating an average price of $2.98/gal come August 1, about a dime lower than the Independence Day forecast.

More details from BIGresearch’s July Executive Briefing are here.