• by Jack Loechner , Staff Writer @mp_research, October 30, 2001

Continuing Confidence

Last week we posted the University of Michigan Consumer Confidence measurements, and shortly after, the Conference Board released data that supports consumer confidence in spite of the fact that more Americans today, than a month ago, believe that the terrorist attacks of September 11th are pushing the United States into a recession recession. A special survey was conducted on both September 18th and 19th, as well as October 18th and 19th.

Over the last month, the number of Americans who say they are not going to postpone plans to buy cars, homes or other large-ticket items has not changed, according to the Special Survey conducted by NFO WorldGroup. More households say they are not cutting back on their plans to travel by plane, and more say they will continue to make investments in the financial markets. "While the purchasing intentions of consumers have not changed and remain quite upbeat," says Lynn Franco, Director of The Conference Board's Consumer Research Center, "it remains to be seen whether these current attitudes translate into actual purchases."

Key findings:

52% of American consumers believe the terrorist attacks are pushing the U.S. into a recession. 46% say these events will affect their households economically. 90% say they do not plan to postpone major purchases, such as a home, car or major appliance. 82% do not plan to postpone financial investments. 79% do not plan to postpone or cancel travel plans by plane

Change in a month, based on the question "because of the events of September 11th"…

          Sept 18-19      Oct 18-19    will it push the U.S. into a recession?           Yes     47.2 %  52.3 %               No      52.8 %  47.7 %
will it affect you or your household economically?          Yes     50.5 %  46.0 %               No      49.5 %  54.0 %    do you or anyone in your household plan to postpone   major purchases (such
as home, car, appliances, furniture, etc.)?          Yes     11.4 %  10.4 %               No      88.6 %  89.6 %    do you or anyone in your household plan to postpone   other purchases?          Yes
10.5 %  10.1 %               No      89.5 %  89.9 %    do you or anyone in your household plan to postpone   financial investments?          Yes     20.5 %  18.6 %               No      79.5 %  81.4 %
do you or anyone in your household plan to postpone   or cancel travel plans by auto?          Yes     4.5 %   4.1 %               No      95.5 %  95.9 %    do you or anyone in your household plan to
postpone   or cancel travel plans by plane?          Yes     30.1 %  21.3 %               No      69.9 %  78.7 %    do you or anyone in your household plan to postpone   or cancel travel plans by
train?          Yes     8.4 %   7.6 %               No      91.6 %  92.4 %    do you or anyone in your household plan to postpone or   cancel travel plans by other means of travel?          Yes
6.8 %   5.8 %               No      93.2 %  94.2 %  

The survey was conducted via phone for The Conference Board by NFO WorldGroup, a member of The Interpublic Group of Companies