Consumer Spending And Saving Still Stagnant

by Jack Loechner, Mar 22, 2011, 8:15 AM

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The last few months have produced some cheerful economic news, with strong corporate profits, modest increases in consumer confidence and rising stock market indices.

The results, though, of The Harris Poll of adults surveyed online by Harris Interactive, finds almost no change in the steps that people are taking to save money and reduce their spending. Many people continue to economize, and there is no evidence of consumers' spending behavior being more relaxed. The psychological impact of the financial and housing crisis is still very strong.

In the sixth Harris Poll since 2009 to ask about twelve steps that some consumers are taking to save money and avoid spending too much, the results in the new survey are virtually identical to those from six months ago. For example almost the same proportions of adults report that they are purchasing more generic brands, brown bagging their lunches, going to a hairdresser or barber less often, switching to refillable water bottles, and more.

The survey does find substantial differences, however, between the behaviors of people over 65 and all the younger generations. Matures are less likely to be going to a hairdresser or barber less often compared to Baby Boomers, Gen Xers, and Echo Boomers, or to have cancelled or cut back cable TV, cancelled landline phone services, or cut cell phone services vs. other generational groups.

Spending/Savings Over Past Six Months (Percent of All U.S. adults)
Spending or Saving	Have done	Have considered	Have not done or considered	Not applicable
Purchasing more generic brands	61%	11%	20%	9%
Brown bagging lunch instead of purchasing it	45	6	14	35
Going to the hairdresser/barber/stylist less often	38	7	29	25
Switched to refillable water bottle instead of purchasing bottles of water	35	9	23	33
Cancelled one or more magazine subscriptions	30	6	23	41
Cancelled or cut back cable television service	22	20	40	18
Stopped purchasing coffee in the morning	21	4	18	56
Cut down on dry cleaning	21	3	16	60
Cancelled landline phone service and only using cell phone	16	19	41	23
Cancelled a newspaper subscription	16	9	29	46
Changed or cancelled cell phone service	14	15	55	16
Begun carpooling or using mass transit	13	8	33	46
Source: Harris Poll, March 2011

 

Considered Spending/Savings Over Past Six Months - By Generation (% of Group; Base:  All U.S. adults)
		Generation
Consideration	Total	Echo Boomers(18-34)	Gen. X(35-46)	Baby Boomers(47-65)	Matures(66+)
Purchasing more generic brands	61%	61%	65%	59%	61%
Brown bagging lunch instead of purchasing it	45	52	51	48	14
Going to the hairdresser/barber/stylist less often	38	38	41	40	32
Switched to refillable water bottle instead of purchasing bottles of water	35	40	36	33	28
Cancelled one or more magazine subscriptions	30	24	23	34	42
Cancelled or cut back cable television service	22	26	18	22	13
Stopped purchasing coffee in the morning	21	25	20	21	12
Cut down on dry cleaning	21	18	13	24	23
Cancelled landline phone service and only using cell phone	16	24	19	13	4
Cancelled a newspaper subscription	16	15	16	17	15
Changed or cancelled cell phone service	14	19	16	12	6
Begun carpooling or using mass transit	13	19	14	11	5
Source: Harris Poll, March 2011

Though the last 12 months have shown that the economy can grow modestly without a substantial increase in consumer spending, says the report, it is very unlikely that the rate of increase in GDP will get much faster until consumers feel more confident. The evidence suggests that economic growth will continue to be sluggish over the next few months, concludes the report.

For additional information about the Harris Poll, please visit here.

  

  

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