Discover’s U.S. Spending Monitor (SM), a monthly measure of consumer confidence, fell 3.5 points this month to a rating of 77.0 percent –its lowest point since February 2009. Furthermore, 66 percent of consumers rated the economy as poor, two points higher than a month ago.
American’s reported that their personal finances have been affected negatively by the struggling economy. Fifty-seven percent said that their personal finances were worsening, and 28 percent rated their current financial status as “poor.” This has significantly affected the way the majority of Americans intends to spend their discretionary income.
52 percent said they will spend less on home improvements, up from 50 percent. 53 percent said they were pulling back on discretionary and entertainment expenses, such as going out to dinner or the movies. 52 percent report they plan to cut spending on major personal purchases, such as gym memberships and vacations, up two points from last month.
Discover’s poll has existed for four years and tracks nearly 8,200 customers.