Fewer consumers are focused on saving than during previous months
Forty-seven percent of survey respondents said they spent less during April than in previous months. This compares to the 57 percent who responded similarly in February, according to the report. The percentage of consumers who spent more increased from 17 to 22 percent during that time.
The report also looked at how various demographics fit into this trend and found that younger Americans were less inclined to reduce spending than their older counterparts. Men are slightly more likely than women to say they are cutting back. Fifty-one percent of conservative respondents have reduced spending, compared to 38 percent of liberals.
While married and not married individuals were equally likely to reduce spending in February, according to the report, this practice decreased in popularity among not married respondents in April.
The percentage of Americans who favored saving to spending was significantly lower in April than February, perhaps debunking theories that consumers have changed their attitudes toward both habits, according to the report. Sixty-two percent preferred saving in February, compared to 50 percent in the more recent poll. Thirty-five percent previously preferred spending, while 44 percent do now.
“While this is clearly good news for the nation’s retailers, it is tempered by the fact that after two years of recession, nearly half of all Americans across most demographic groups continue to say they are cutting back on their spending,” the report said.
The Federal Reserve Board’s recent consumer credit report supports these trends, with overall credit increasing at an annual rate of 1 percent during March. The previous month witnessed a decrease at an annual rate of 3 percent.
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