Consumers Planning to Hold Back The recent release of BIGresearch's Consumer Intentions & Actions Survey for September points out that conservatism is the name of the game regarding
personal finances, with the majority of consumers contend they're practical spenders.
Some key findings in September are:
- 27.9% of consumers are
worrying about political and national security issues, up from 17.0% last month and a new high for '05.
- Purchasers focused on needs over wants has skyrocketed to 61.1% in
September, up from 47.1% in the previous month and a new high
- 19.7% of respondents say fluctuating gas prices have had no major impact on spending
- 60.2% say
they are simply driving less
- 43.8% are decreasing vacation/travel
- 42.6% are cutting back on dining out
- 33.6% are spending less
on clothing
41.7% of respondents plan "pay down debt," up from 36.3% in August
"decrease overall spending" is a close #2 with 40.2%, up more than 10
points from last month 29.2%.
In the "advance Holiday '05 Outlook," it appears that the devastation in the Gulf, rising pump prices, and forecasted increases in home heating
costs this winter have consumers thinking more conservatively this season.
- 21.7% say it's too early to know,
- 34.7% plan to spend less
on gifts than they did last year (compared to 27.9% in 2004)
- 33.7% plan to spend the same (versus 40.8% last year)
- 6.3% intend to spend more (down from
7.6% in '04)
The 90 Day Outlook On Retail
Merchandise Categories Compared To August 05 And September '04 |
Category | August 2005 | September 2004 |
Children's | DOWN | DOWN |
Toys and Games | FLAT | DOWN |
Women's Dress | DOWN | DOWN |
CDs/DVDs/Videos/Books | DOWN | DOWN |
Women's Casual | DOWN | DOWN |
Electronics | DOWN | DOWN
|
Men's Dress | DOWN | DOWN |
Groceries | DOWN | DOWN |
Men's Casual | DOWN | DOWN |
Home Improvement | DOWN | DOWN |
Shoes | DOWN | DOWN |
Lawn & Garden | DOWN | DOWN |
HBC | DOWN | DOWN |
Home Furniture |
DOWN | DOWN |
Dining Out | DOWN | DOWN |
Decorative Home Furnishings | DOWN | DOWN |
Sporting Goods |
DOWN | DOWN |
Linens/Bedding/Draperies
| DOWN | DOWN |
Source: BIGresearch's Consumer Intentions & Actions Survey, Sept. '05 |
Finally, the
University of Michigan found that consumer optimism sinks as gasoline prices rise. Richard Curtin, the Director of the University of Michigan's Surveys of Consumers, noted that the unusually large
August decline was widespread among all demographic groups and across all regions of the country. He said "Consumers anticipated higher inflation, higher interest rates, higher unemployment and a
slower pace of economic growth during the year ahead,"
At least one bright spot...purchase intentions for high-dollar durables are up compared to last month and last year. 10.4%
plan to buy a vehicle in the next 6 months, up from 9.6% in August and 9.6% in '04.
For more information on BIG Consumer intentions, go here.
For the University of Michigan release, see this release.