Perspectives on the economic recovery have continued a three month slide, with 58% disclosing the economy is in ruins as far as they are concerned. This percentage is 7% higher than last month while only 23% see economic conditions improving in the month ahead. These findings, according to the Discover “U.S. Spending Monitor” for July, also shows 26% of consumers are planning to reduce their overall spending in the month ahead, a 3-point rise from June. Namely, 48% plan to spend less on going out to dinner, movies or sporting events, up 2% since June, 48% to spend less on home remodeling or new appliances, up 1% since last month, and 48% will spend less on vacations or gym memberships, up 2% since last month. Given these data, based on a poll of 8,200 consumers, the Discover “U.S. Spending Monitor” for July fell 1.9 points in July to 86.5. Additional findings show 36% felt their finances were in good or excellent shape, a 3-point improvement from the prior month and the highest number in 20 months; 21% felt their personal finances were improving in July, 1 point better than June; and 49% expect to have money left over after paying bills, but consumers expecting an income shortfall was flat at 38%.
2010 SPENDING MONITOR