PORT WASHINGTON, NEW YORK, June 2, 2008 –The percentage of consumers who feel we are in tough times or a recession has increased since April, according to a monthly survey from leading market research company The NPD Group, Inc. According to the latest results of NPD’s Fast Checks Study: Consumers Speak Out On the U.S. Economy, in May, 58% of consumers said we are in a recession, compared to 55% in April. What’s more, consumers are not only less optimistic about the economy, they are beginning to change their behavior in response.
How are consumers reacting? The survey respondents said they are planning to spend less on things like apparel and footwear. And with vacation season approaching, 49% of consumers said they plan to cut back on leisure travel. According to NPD Chief Industry Expert Marshal Cohen, “It looks like ‘stay-cations’ will be catching on this year.”
The study uncovered additional information about consumers’ spending intentions. A greater percentage of consumers said they are spending less because they need to put money toward essentials, such as gas and utilities.
| Why Would You Say You Will Spend Less? | ||
| April | May | |
| Saving &/or Investing | 26% | 26% |
| Paying Down Debt | 44% | 43% |
| Putting Money toward Gas, &/or Utility Bills | 65% | 67% |
| Putting Money toward other monthly bills | 49% | 53% |
| Source: The NPD Group Inc. /Consumers Speak Out on the U.S. Economy | ||
Additionally, this NPD study continued to look at what kinds of promotional events or retail incentives consumers are most likely to be interested in.
| Which Money Saving Things Will You Take Advantage Of? | ||
| April | May | |
| Won't Do Anything Different | 42% | 37% |
| Any promotions/events or programs | 58% | 63% |
| Store Sales | 25% | 25% |
| Coupons | 22% | 26% |
| Discount &/or membership programs | 7% | 9% |
| Source: The NPD Group Inc. /Consumers Speak Out on the U.S. Economy | ||
“Consumers are finally starting to react to the price of gas and other rising costs and are shifting shopping intentions.” Cohen said, “Overall, in the past month, a 5 percentage point increase was seen in survey respondents who tell us they are going to do something different by taking advantage of promotions/events such as store sales, coupons, and discount or membership programs.
Summing up this month’s results, Cohen stated, “Consumers continue to display their intentions to spend, but now appear to be thinking twice before they actually do.”
Methodology: The NPD Group fielded this study using Fast Checks*. This Fast Checks survey was fielded to a nationally representative sample of 2,000 men and women ages 18 and older. The data has been weighted. The data presented in this report was collected from 773 total respondents. The survey was fielded Tuesday, May 6th to Tuesday May 13th, 2008.
*NPD’s Fast Checks surveys are quick, flexible, and budget-conscious online surveys.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com.