Consumer Confidence Up; Holiday Spending, Maybe According to BIGresearch's September Consumer Intentions and Actions Survey (CIA), the impact of gas prices is down,
confidence is up, and consumers are feeling better about increasing their spending this holiday season. 42% reported that they plan to spend about the same if not more than last year.
Joe Pilotta, VP of research for BIGresearch, said "We are seeing this trend across the board, regardless of income. Compared to last year's survey, consumer price
sensitivity is down in spite of wildly fluctuating gas prices."
Current Consumer Attitudes vs. 2005
(% of respondents) |
| Sept.
2005 | Sept. 2006 |
Confidence | |
Very Confident/Confident | 33% | 43% |
Attitudes Toward Sales | |
Sales not important | 13% | 16% |
I only buy on sale |
23% | 16% |
Attitudes Toward Spending | |
I will be spending the same or more than last year
for the holidays | |
40% | 42% |
I will be spending less than last year | 35% | 30% |
Source: BIGresearch, September
2006 |
People are also more willing to abandon their "sales-only" shopping habits this year, with 16% saying sales are not important
compared to 13% in 2005. In 2005, 23% said they would buy only on sale. That number dropped significantly to 16% in 2006.
Many people remain skeptical of falling gas prices.
When asked if they expect gas prices to be more, less or about the same by Thanksgiving:
·44% of those surveyed said gas will cost more
·32% expected prices to be the same
·24% said gas prices will be less than they are now
·Respondents believe the average price of
gas will be $2.84 per gallon
"... these findings indicate that consumers are taking a 'wait-and-see' approach to the temporary lows we're seeing at the pumps these
days," said Pilotta.
Additional information on CIA and BIGresearch samples may be accessed here.