• Ad Age , Wednesday, December 24, 2008 10:30 AM

Though it has been a while since we checked in on The New Frugality, it's of little surprise that austerity continues apace. Gas prices may be down by as much as 60% since the summer, but 48% of consumers are spending those savings on groceries, and 42% will sock it away for an even rainier day. Only 10% plan to splurge on entertainment, Jack Neff reports, but 37% said they will use it to buy gifts and 30% plan to pay down credit card debt.

Precima, the Toronto-based unit of Alliance Data's LoyaltyOne marketing firm, surveyed 3,000 consumers between Nov. 28 and Dec. 8.

The survey also found the recession is changing the way consumers plan their grocery trips, with 27% of consumers saying they can no longer afford to stock up on food. Another 35% say they're stocking up more, but only on sale items.

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