Consumers remain cautious about spending money despite the fact that retail sales have shown some gains over the last year.
In fact, more than 60% percent of consumers reported shopping only when they needed something and 39.2% said they can only afford to shop for fun, down from 68% 10 years ago, according to a new survey by America’s Research Group and UBS Global Equity Research.
“Families have little disposable income today and every day brings new problems that raise doubts and fears about the economy and their financial futures,” C. Britt Beemer, chief executive officer and founder of America’s Research Group, said in a release.
The May survey also found:
• Only 12.1% of shoppers make purchases using credit cards to avoid adding to debt
• 30.6% only buy necessities, 23.4% buy only sale items
• People continue to remain worried about their jobs with most Americans now expect to work three to seven years longer than just four years ago.
• Although the majority don’t expect layoffs, only 59.5% are excited about any job prospects.
• Only 25.9% of family heads are seeing overtime at their place of work.
• 20.9% see the debt they have accumulated as a big problem and for them the future doesn’t seem so rosy. Only 32.5% say debt is not a problem.
“Until job prospects improve considerably, consumers will continue their unenthusiastic shopping behavior,” Beemer says.
The ARG/UBS Consumer Mind Reader Survey consisted of 1,000 telephone interviews conducted May 1 to 4, 2010 among family heads of households. The error factor is plus or minus 3.8%.
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