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Consumers Not Yet Convinced: Survey
Chalk it up to high fuel prices, slow job recovery and the war in Iraq, but American consumers are still cautious about prospects for 2005, according to a survey conducted earlier this month by NOP World/Roper Reports.
While the U.S. market was buoyed in 2004 by technological innovations (for example, iPods, fuel hybrid cars and flat-screen monitors), more consumers are less convinced about the future health of the U.S. economy. More are either “generally pessimistic” (18% in Dec. ’04 as compared to 14% in December ’03) or “uncertain” (43% vs. 42%) about the fiscal future of the country, as compared to 38% who are “generally optimistic” (vs. 42% last year).
The Roper Report also detected a growing generational divide, with 46% of Baby Boomers expressing a sense that “things in this country are generally going in the right direction.” In contrast, 64% of Gen Y respondents said that “things in this country are generally on the wrong track.”
More men than women are optimistic about the future of the U.S. (53% vs. 38%) and the U.S. economy (45% vs. 32%). However, few men (24%) and women (20%) described this as a “good time to buy” — a sentiment that helps explain the lackluster holiday sales for Christmas 2004 (the survey was conducted in the first week of December).
When asked about their major concerns for 2005, consumers cited the rising cost of health care (72%), the war in Iraq (71%), inflation and high prices (70%), and having enough money to live right and pay bills (68%). Concern for the stock market was at the bottom of the list, down a percentage point from 2003, to 35% of respondents.
Among societal concerns cited, the largest percentage of consumers (60%) expect the privacy of personal information to worsen (17% expect it to improve). Terrorism (44%), crime (45%) and corporate corruption (45%) also ranked among top societal worries.
How will these attitudes impact spending in 2005? According to the survey, fewer consumers plan to spend on: vacations lasting a week or more (43% this year vs. 47% last year); a major home improvement (30% vs. 33%); a new home (15% vs. 18%).
The Roper Report survey was conducted by telephone among 1,000 American adults from Dec. 4-5, 2004. The company will post the full report at its client portal at Nopworld.com.
