Consumers More Practical While Confidence Slips Slightly

by Jack Loechner, Mar 21, 2005, 3:00 AM

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Consumers More Practical While Confidence Slips Slightly

BIGresearch's Consumer Intentions & Actions Survey, March 2005, monitoring over 8,000 consumers provides unique insights in a fragmented and transitory marketplace.

Key results include:

•  Worry about political/national security issues continues to hover around 20%
•  Consumers confident in chances for a strong economy off two points in March
• After improvement last month, the employment outlook flatlines for consumers
•  Practical consumers attempt to reign in spending and focus on debt in March
•  Apparel categories continue to rise from last month and last year, according to the 90 Day Outlook
• Hybrid cars are what’s hot this month! 

Brief summaries of key points include:

Consumers confident in chances for a strong economy are off two points in Marcch. 45.6% this month are very confident/confident, compared to February, but up 18 points from March ’03.

After seeing an improvement last month, in March the U.S. employment outlook stabilizes in the minds of consumers…those predicting “more” layoffs over the next 6 months flat at 27.4%, “same” up to 55.7%, while “fewer” down slightly to 16.9%.

Practical consumers attempt to reign in spending and focus on debt in March…paying down debt still the financial priority and more plan to do so in March (42.1%) than February (41.4%).  Those planning to increase savings and decrease overall spending also up from February, while those planning to pay with cash more often up slightly.   With mortgage rates on the rise, those planning to refinance their home down this month to 2.5%.

FUTURE PURCHASES

Only 2.5% of respondents report that they plan on buying/subscribing satellite radio in the next 6 months, 16.1% say someday, while 4.2% say they already have it.  And of those planning to buy, 28.7% say they will buy Sirius vs. 16.7% for XM.

March’s increase in practicality is reflected in 6 month purchase intentions…while investments in TVs, stereo equipment, furniture, major home improvements/repair, and vacation (seasonal) are up/up slightly this month, computer & home appliances are flat…house, jewelry/watch, RV/boat, DVD/VCR, and digital camera off slightly.

With purchase intentions for autos down in March v. February (9.4% to 10.0%), who’s leading the car wars?  Here’s a look at the Top 5 name plates for those planning to buy new in the next 6 months:

Car	Truck	Mini-Van	SUV
1. Toyota	1. Ford	1. Dodge	1. Ford
2. Volkwagen	2. Dodge	2. Ford	2. Chevrolet
3. Ford	3. Chevrolet	3. Honda	3. Jeep
4. (tie) Buick	4. Toyota	4. Toyota	4. GMC
5. Lexus	5. Nissan	5. Chevrolet	5. Honda

Look for practical consumers to update their wardrobe with spring merchandise, as apparel categories continue to rise from last month and last year, according to the BIGresearch Diffusion Index (those who say they’ll spend less subtracted from those who’ll spend more).  In addition, it looks like consumers are considering splurging on electronics and CDs/DVDs:

Retail Merchandise Categories - 90 Day Outlook (March 05 compared to February 05 and March 04)

Category	February 05	March 04
Children's	UP	UP
Toys and Games	DOWN	DOWN slightly
Women's Dress	UP	UP
CDs/DVDs/Videos/Books	UP	UP
Women's Casual	UP	UP
Electronics	UP	UP
Men's Dress	UP slightly	UP
Groceries	DOWN	DOWN
Men's Casual	UP	UP
Home Improvement	UP	DOWN slightly
Shoes	UP	UP
Lawn & Garden	UP	UP
HBC	UP slightly	UP slightly
Home Furniture	DOWN	DOWN
Dining Out	DOWN	UP
Decorative Home Furnishings	DOWN	UP
Sporting Goods	DOWN	UP
Linens/Bedding/Draperies	DOWN	DOWN

 

You can find out more here.

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