• by Jack Loechner , Staff Writer, August 14, 2007

Consumers Anxious, Realistic, Practical, and Cautious About Next 90 Days

According to BIGresearch's monthly Consumer Intentions & Actions Survey, consumer confidence declined to 43.8% from July when it was at 47.8%. However, the August number is still higher than August 06 when confidence was 38.6%.

Gary Drenik, President & CEO of BIGresearch, says "Consumers seem to be feeling a bit of economic anxiety; they want to be optimistic but seem concerned about their financial situation and appear pessimistic over the future price of gas and increased layoffs." And, while thoughts of "not as well off as last year" are pervasive, there is no indication of a decrease in overall spending.

Shopping strategies appear to be evolving towards a price orientation as 17.8% cited only buying clothing when on sale, versus 13.7% who said sales are not important when buying clothing.

Future purchase plans (next 6 months) for most big ticket durables were up from August 06 for computers, furniture, appliances, jewelry, TVs, digital cameras and vacation travel.

As a snapshot of the current attitudes, intentions and expectations, here's a summary of the study findings..

Concerning the economy:

• In August, 43.8% of consumers surveyed contend they are very confident/confident in chances for a strong economy, down four points from last month, but still an increase from last year (38.6%).
• Worry about political and national security issues flatlines...17.9% continue to be vigilant, compared to 18.0% in July and 20.5% in '06.
• 21.3% of consumers are concerned with food safety, up from 19.6% last month and more than seven points from last year (14.1%).
• In August 37.9% contend they've become more practical and realistic in their purchases, down about a point from July and lowering from 41.2% last year.
• 46.5% feel they are more focused on needs over wants in purchasing, down a point from July and almost five points from '06.

Considering personal and financial plans and expectations:

• This month, 33.3% feel there will be "more" layoffs over the next six months, compared to July's 31.4%. 
• 4.7% worry about being handed a pink slip, up from 4.0% in July.
• 31.7% of consumers feels that their financial situation is "worse off" than last year, but those planning to decrease overall spending declines from ‘06. 
• Paying down debt remains the priority for 33.1% down from 36.2% in '06.
• This month, 63.6% say they would definitely/probably invest in the stock market, down almost three points from last month.
• 27.1% of respondents contend that gas prices are having "no major impact" on spending, up several points from '06 (23.6%). 
• Of the 75% of consumers who are affected by prices at the pump, 38.9% are simply taking fewer shopping trips to defray the extra expenditure,  37.5% shop closer to home, 26.4% clip coupons more often, while 24.5% comparison shop with ad circulars.The average consumer dines on fast food about four times a month, however one in ten (10.4%) indulges more than 10 times per month. 

On the retail scene:

In August, 14.7% contend that newest fashion trends and styles are important to them, up significantly since each of the five years prior. 52.4% still say that value and comfort override fashion, while 32.9% prefer the traditional conservative look.

Among the Top 5 Grocery stores, customers at Publix, known for selection and quality over price, tend to spend the most, while shoppers at value-based grocers (Wal-Mart, Kroger, Meijer) tend to spend less. 

For more information on the Consumer Intentions & Actions Survey, please visit BIG here.