Report: Online Consumers Still Under Economic Strain

Federal Reserve Chairman Ben Bernanke on Tuesday sent stocks higher when he said that the recession was "very likely" over. But that news has not seemed to trickle down to anxious consumers, based on the latest findings from Performics' ongoing survey of online shoppers.

From April -- when the study kicked off -- to August, the proportion of those who expect their household economic situation to improve this year has declined steadily each month, dropping from 30% to 14%. Meanwhile, the share of people in August who said their economic situation was improving fell to 8% after rising to 13% in July from 10% in April.

As a result, consumers continue to focus on cutbacks. Almost two-thirds say they stick to a budget to control impulse spending, and about half use comparison-shopping sites and buy only sale items to save money.

Where do they get their economic news? Sixty-five percent turn to online sources. One in five has searched online for information on the "Cash for Clunkers" program, and 15% have searched for news on the rise of existing home sales in the U.S.

And for the fifth month in a row, eight in 10 online buyers somewhat or strongly agree that the recession will have a lasting impact on their saving and spending habits.

While declaring an end to the recession, Bernanke also warned that it could be months before unemployment rates fell significantly, and that conditions will make it feel like a weak economy for some time.

In August, comScore reported that second-quarter online sales were essentially flat compared to a year ago, dropping 1% to $30 billion. The period marked only the second quarter on record where e-commerce spending was lower than the year-earlier quarter.

Performics, the performance marketing arm of Publicis Groupe's ViVaKi Nerve Center, commissioned ROI Research to conduct this survey and monthly surveys through December 2009. The August survey was conducted over a two-day period among 300 consumers who have made an online purchase in the past six months.

The study collects consumer data each month to track and document changes in consumers' attitudes and behaviors in light of the current economy, and includes additional topical questions with each monthly survey.

Performics chart

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