According to the Consumer Intentions and Actions Survey conducted by BIGresearch, which interviewed over 7,100 consumers between January 6-10th, the current economic environment has consumers pulling
back some of their spending. In addition, they don't see the economy returning to normal until the second half of 2002, and many have changed some buying behaviors since September 11.
Some key
findings from the survey show that since September 11, 44.8 % of people are spending more time with family and 39.2% said they are more practical when making purchases, while only 5.6% said they are
less practical and more impulsive. Regarding the current economic climate, 62.9% felt it would take from 6 months to more than a year for the economy to get back to normal.
Consumer confidence was
static from the December numbers of 62.4% being confident or very confident vs. 61.8% in January. The general uncertainty towards the economy that consumers are feeling appears to have created a
desire to put their financial houses in order, as expressed by their financial plans for the next 3 months, which are lead by paying down debt 46.3%, increasing savings 38.1%, and decreasing overall
spending 37.5%.
All is not lost for retailers, however, as the move on behalf of many consumers to spend more time with family has also created a desire to buy furniture, home appliances and
electronics. Over the next 6 months, 17.6% plan on buying furniture, 14.7% home appliances and 20.1% TV's/VCR's/DVD's. In addition, 13.1% also plan on spending more on groceries and 18.4% on home
improvement supplies over the next 90 days.