• by Jack Loechner , Staff Writer, January 4, 2007

According to the BIGresearch Consumer Intentions & Actions Survey of over 8,000 consumers surveyed from 12/5 to 12/13:

• Consumer confidence is lower in December
• Fewer consumers are focusing on needs over wants
• Consumers will reign in spending once the holiday buzz wears off
• Rising pump prices are breeding pessimistic outlooks
• Apparel shoppers are losing interest in Wal-Mart
• 90 Day Outlook has improved from '05
• Auto purchase intentions are on the rise

Relative to the economy, consumers are pulling back on their optimism for state of the union this month 46.9% contend they are confident/very confident in chances for a strong economy, down from 50.3% last month, but still an increase from '05 (43.7%)

Highlights of the research on current attitudes include:

• 18.9% of consumers continue to worry about political and national security issues, down slightly from 20.2% last month.
• 40.8% of consumers declare they've become more practical in the last 6 months, down about a point from last month (41.6%) and almost full 5 points from last year (45.5%).
• And 50.2% of consumers still say they focus more on needs over wants in purchases, but fewer are doing so compared to last month (51.3%) and last year (55.2%)
• 32.7% of consumers contend they'll decrease overall spending in the next 3 months, a rise from 31.4% in November, but still less conservative compared to last year (35.2%). Pay down debt still the top financial plan at 36.7%, flat with last month. Increase savings (29.3%) and pay with cash more (22.6%) also level with November

While the number of drivers impacted by fluctuating gas prices remains relatively stable from last month and last year at 70.6%, the rising average price at the pump is breeding a pessimistic outlook on future prices. With AAA estimating the current average at $2.29/gal. (up from $2.23 last month):

• 68.7% expect gas prices to climb further through the holiday season (v. 53.9% in November),
• 28.3% predict the "same" vs. 34.7% last month
• 3.0% are optimistic with "less" vs.11.3% in November
• Drivers predict an average pump price of $2.67 on New Year's

The 90 Day Outlook continues to forecast good tidings for retailers...according to the BIGresearch Diffusion Index (those who say they spend less subtracted form those who'll spend more), while most categories declined from November (an indication that consumers will tighten their budgets after the New Year), all major categories improved from '05:

14.0% of consumers are contemplating an auto purchase in the next 6 months, up from 12.7% last month, almost 4 points from last year (10.4%), and more than 5 points from '04 (8.5%)

For more complete details in this report, please go to BIG here.