Views on U.S. Economy and Finances Improve, Outpacing Spending
Intentions
RIVERWOODS, Ill.--(BUSINESS WIRE)--Mar. 7, 2012--
Consumer confidence grew again in February, driven by a more optimistic
outlook for the economy and personal finances. The Discover
U.S. Spending Monitor, a 4-year-old daily poll tracking economic
confidence and spending intentions of nearly 8,200 consumers throughout
the month, jumped 4.4 points from the previous month to 94.9. This is
the highest level the Monitor has reached since October 2007.
Highlights of Discover U.S. Spending Monitor Results
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December
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January
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February
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2011
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2012
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2012
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Discover U.S. Spending Monitor Index
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85.0
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90.5
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94.9
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U.S. Economy Improving
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23%
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30%
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32%
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Personal Finances Improving
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19%
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23%
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24%
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Economic Expectations Growing, Particularly Among Men
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Expectations for the U.S. economy are improving. For the first time
since January 2011, nearly one-third of consumers, or 32 percent,
believe the economy is getting better. This is 2 percentage points
higher than the prior month.
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While more than half, or 52 percent, of consumers rate the U.S.
economy as poor, this is the lowest level since January 2011. Only 12
percent of respondents view the economy as excellent or good, an
increase of 1 percentage point over last month and 3 percentage points
compared to February 2011.
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More than 35 percent of men view the economy as getting better, an
increase of nearly 5 percentage points over January 2012. However,
only 29 percent of women share the expectation that the economy is
getting better, and this level did not change from last month.
Personal Finance Confidence Reaches Pre-Recession Levels
Consumer sentiment about personal finances continued to improve in
February.
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More than 36 percent now rate their finances as either excellent or
good, which is the highest figure in more than a year and a jump of 2
points from the month earlier.
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Nearly one-quarter, or 24 percent, of consumers believe their personal
finances are getting better. Forty-three percent view their finances
as getting worse, which is 4 percentage points lower than last month
and the lowest level since October 2007.
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There were fewer consumers with higher incomes (above $75,000
annually) and lower incomes (below $40,000 annually) viewing their
personal finances as worse compared to last month. These figures
declined by 6 percentage points to 29 percent and 3 percentage points
to 55 percent, respectively. The portion of middle-class income
consumers who view their personal finances as getting worse remained
unchanged at 42 percent from January 2012.
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Nearly 50 percent of consumers reported they had money in their
pockets after paying bills last month, the highest level since March
2009.
Consumers Remain Cautious About Spending Intentions
Consumers’ growing confidence in the economy and their personal finances
is not substantially boosting purchasing intentions. While 28 percent
say they plan to spend more next month, a 4-point increase from the
month before, the most significant increase came from a spike in
household expenses, such as gasoline and groceries.
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Spending next month on household expenses, including gasoline, is most
likely to increase. More than 44 percent of consumers expect to spend
more, an increase of 7 percentage points compared to the prior month.
Gas prices are near the record high of $4.11 set in July of 2008, when
more than 57 percent of consumers expected spending on household
expenses to increase in the next month.
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Historically, the Monitor experiences an uptick in home improvement
spending in the Spring. In February 2012, 14 percent indicated they
plan to spend more, a 2-point increase and the highest level for the
month of February since 2008.
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Nearly 10 percent of consumers expect to spend more on discretionary
purchases like going out to dinner or the movies, a slight increase of
2 percentage points compared to the prior month.
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Despite the coming of Spring break for many consumers, expectations
for spending on major personal purchases, like vacations, in the next
month remained unchanged from the prior month at 12 percent.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company
operates the Discover card, America's cash rewards pioneer, and offers
personal and student loans, online savings accounts, certificates of
deposit and money market accounts through its Discover Bank subsidiary.
Its payment businesses consist of Discover Network, with millions of
merchant and cash access locations; PULSE, one of the nation's leading
ATM/debit networks; and Diners Club International, a global payments
network with acceptance in more than 185 countries and territories. For
more information, visit http://www.discoverfinancial.com.
Source: Discover Financial Services
Discover
Matthew Towson, 224-405-5649
matthewtowson@discover.com