• by Jack Loechner , Staff Writer @mp_research, March 30, 2003

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 hobby	26

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 volume	67%
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