Discover U.S. Spending Monitor Falls for First Time in Four Months
Discover has announced that its U.S. Spending Monitor fell for the first time in four months from 86.2 to 85.6 (based out of 100) finding that "consumer attitudes toward the economy reversed course from the previous three months with more consumers expressing concern over the current state of the U.S. economy. Overall, 59 percent rated current economic conditions as poor, a 4-point increase from the previous month and the first increase since February."
While consumers are clearly concerned over current economic conditions, the number feeling the economy is getting worse remained at a Monitor-low 49 percent in June.
The drop in economic confidence also appeared to have little effect on consumer attitudes toward personal finances. Thirty-three percent currently rate their finances as good or excellent, the same number reported last month.
But the reversal in consumer attitudes toward the economy appears to be affecting discretionary spending intentions. Higher gas prices, along with uncertainty as to whether the economic recession has bottomed out has consumers either holding the line or cutting their discretionary spending intentions in the month ahead.
“The optimism we were seeing from consumers in terms of the economy over the past few months may have hit a roadblock in June,” said Julie Loeger, senior vice president of brand and product management for Discover Financial Services. “With unemployment still rising and uncertainty as to whether the economic recession is ending, consumers are seeing no reason to change the spending restraint they’ve exhibited over the last several months.”
“Unemployment is the highest it’s been in 26 years and higher gas prices have forced consumers to keep a tight budget. It is no wonder consumers are concerned about the economy and their finances,” Loeger said. “But for the second straight month, less than half feel economic conditions are getting worse, a sign that consumers are hopeful the worst of this economic recession has passed.”
For more Discover U.S. Spending Monitor survey data, charts and information, please visit http://www.discoverfinancial.com/surveys/spending.shtml.
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