War Affecting Consumer Spending Plans

War Affecting Consumer Spending Plans

According a survey from InsightExpress and Universal McCann, US consumers are spending considerably less on certain everyday items like home electronics, household appliances, and in-home media entertainment considering the state of the economy and the threat of war with Iraq.

US Consumers Spending LESS on Everyday Items, March 2003 (% of respondenrts)

Going to movies 42%
Eating out at fast food restaurants 41
Home electronics 37
Alcoholic beverages 36
Eating out, casual dining 35
Household appliances 35
In-home media entertainment 32
Home improvement or repair 30
Favorite activity or hobby26

Source: Universal McCann, Insight Express March, 2003

InsightExpress surveyed 300 people in the US during mid-March 2003. The survey also determined that 50% of respondents think it is currently a bad time to look for a job. Indeed, many employers are also waiting for economic and political changes before they begin hiring again. According to a New York Times Job Market survey in the New York metro area, 46% of hiring managers are waiting for better stock market performance to hire new employees and 45% are waiting for US government intervention to improve the economy.

Factors New York Based Employers Say Will Greatly Influence Their Decision to Hire New Employees in 2003 (% of respondents)

Increase in sales volume67%
Increase in consumer spending 56
Improved stock market performance 46
Government intervention to improve economy 43
Reduced health care costs 38
Increase in capital spending 38
Decrease in costs of purchased goods 36
Greater stability in International affairs 34
Decrease in oil price/energy costs 32

Source: New York Times, December, 2002
Next story loading loading..