• by Jack Loechner , Staff Writer @mp_research, June 29, 2006

According to the BIGresearch Consumer Intentions & Actions Survey, in June the confidence in the economy declined for the third straight month to 36.1%, an almost 3 point decline from May (38.7%) and a ten point drop from 2005 (46.3%).

Key survey findings between June 7^th and the 14^th are reported as:

• Confidence in the economy declined for the third straight month
• Practical consumers seeking value priced alternatives for summer fun
• The employment outlook for remaining 2006 is mixed
• Drivers lower guard slightly concerning prices at the pump
• 90 day spending intentions are cooling off

(The report suggests that the dip in confidence is not entirely attributable to the situation overseas, with fewer than one in five say they've been worrying more about political and national security issues. But, almost half of consumers say they've been focused on needs over wants, about even with May and an almost five point increase from '05 (45.0%).

Compensating for the extra dollars spent fueling their vehicles, says the report, consumers have become less conservative with their finances over the past 90 days...36.2% report in May that they've made paying down debt a financial priority. Decreased overall spending remains flat at 32.0%, while those increasing their savings are five points lower at 25.9%. Pay with cash more often increases slightly to 22.9%.

For June, 57.9% of investors say they would definitely/probably invest in the stock market, declining from 62.9% in May. Investors planning to buy lower two points to 9.0%, while those planning to sell down half a point to 5.4%.((

In June about one in four consumers say the cost of fueling their autos is having "no major impact" on spending, up a point from May, but down about 15 points from June '05 (40.4%). Automakers, furniture dealers and electronics retailers beware, concludes the report. More than one in five (23.3%) insist that pump prices are pushing them to delay high-dollar durables purchases, up from May (22.4%) and last year (14.9%).

Drivers scrimping and saving in order to fuel their vehicles. More than two in five (42.9%) are simply taking fewer shopping trips, 37.8% are buying closer to home, one-third (32.6%) are on the prowl for sales and specials, while close to one-quarter are clipping coupons (24.4%) or opting for store brands/generics (23.5%).

90 day spending intentions are cooling off, according to the BIGresearch Diffusion Index (those who say they'll spend less subtracted from those who'll spend more). All categories are down from May as well as '05:(

For the complete report, please visit BIG here.