Rising prices at the pump may be causing consumers to think twice before making other purchases,the report notes, as those who say they've become more practical in their purchases up to 45.9% v. 42.9% in May, the highest reading since November 2003.
Consumers continue to view the employment outlook as positive. Those predicting "more" layoffs over the next 6 months are down. However, consumers have their own job security on their minds, as concern with becoming laid off up at 5.5% v. 5.0% in May.
Practical consumers plan to decrease overall spending this month 35.7% (v. 34.2% in May), and fewer are planning to pay down debt in June... 41.1% v. 41.7% in May, and the lowest reading since bottoming out at 40.8% in June 2003. More consumers are planning to pay with cash more often in June than in May at the expense of their savings and debt repayment.
Confidence in Wall Street lowers 3 points in June, with 59.6% of investors saying they will definitely or probably invest in the stock market, while those planning to sell is flat at 6.5%.
More consumers say they're deferring purchases from auto dealers, restauranteurs, and entertainers than in May. The 18-34 year old crowd is more likely to put off dining out, entertainment, and electronics purchases than those 35+, who are more apt to be putting off vacation travel, home improvement projects, and auto purchases.
20.7% of consumers became likely to cut back on apparel expenditures through July 4th as a result of rising gas prices, which explains why the 90 Day Outlook for clothing categories are down this month, according to the BIGresearch Diffusion Index. Lawn & Garden supplies begins its seasonal decline, but toys are up from May and June 2003.
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