Consumers Remain Unsettled About the Economy December 09, 2010
Contact Info: Bradley Honan Senior Vice President, StrategyOne 212-704-8295 Bradley.Honan@strategyone.net http://www.strategyone.net
1
Survey Methodology
• StrategyOne, a Daniel J. Edelman company, conducts weekly surveying around holiday shopping and related consumer attitudes and expectations
• StrategyOne surveyed 1,072 U.S. Consumers between November 22 and 23, 2010. • The overall margin of sampling error at the 95% level of confidence is = +/- 3.14% overall and larger for subgroups • Statistical weights were designed from the United States Census Bureau statistics.
2
Key Insights & Conclusions
Despite recent positive economic news, most Americans are deeply concerned about the state of the economy: • 79% think the U.S. remains in a recession • Only 10% think the economy is excellent or good • Just 8% think the economy will be better next year
3
Key Insights & Conclusions
This pessimism is influencing holiday shopping: • 39% of consumers are concerned enough about the economy that they are planning to spend less during the holidays vs. last year • 52% said they were uncertain about the future and would spend about the same as last year
• 36% thought spending a lot of money on gifts was in bad taste this year with so many out of work • 43% are worried about how the Irish financial crisis would affect the U.S.
4
Key Insights & Conclusions
These findings contrast with reports suggesting economic improvement • The Consumer Confidence Index rose to its highest level since June • Consumer spending is up for the fourth month in a row • New unemployment claims are at a 2-year low • Consumers are saying “not so fast” on calling a recovery • Despite some good news, consumers are still uncertain about the future
5
Consumer Worries About the Economy
6
Consumers say recession continues I believe the U.S. economy is ‌?
No longer in a recession
In a recession
Question text: I believe the U.S. economy is ‌?
7
Most Consumers Rate the Economy Poorly The rating I give the economy today is ‌. ?
Question text: The rating I give the economy today is ‌ ?
8
Only Slight Improvement Likely, Consumers Say By this time next year, the U.S. economy will be …. ?
Question text: By this time next year, the U.S. economy will be … ?
9
Consumer Worries Influence Spending Decisions Which of the following statements do you agree with more ‌? I am still very concerned about the economy, so I will spend less than last year
The recession is over, so I will spend more this year
I am uncertain about the economy, so I will spend about the same as last year
Question text: Which of the following statements do you agree with more ‌?
10
Is Excessive Spending in Bad Taste? People who spend a lot of money this season on gifts are acting in bad taste because so many people are out of work. Do you ‌? Agree
Disagree
Question text: People who spend a lot of money this season on gifts are acting in bad taste because so many people are out of work. Do you ‌?
11
Will Irish Crisis Influence U.S.? How much of an impact do you expect that the burst of the Irish housing bubble will have on the U.S. economy?
Question text: How much of an impact do you expect that the burst of the Irish housing bubble will have on the U.S. economy?
12
Contact Info
If you have any questions, please contact: Bradley Honan
Senior Vice President, StrategyOne 212-704-8295 Bradley.Honan@strategyone.net
13