Views on Personal Finances Improve, Spending Intentions Remain the
Same
RIVERWOODS, Ill.--(BUSINESS WIRE)--May. 2, 2012--
Consumer confidence was flat in April, as more people saw their personal
finances improving, while the effect of higher gas prices may have
contributed to declining attitudes about the overall economy. The
Discover U.S. Spending Monitor, a nearly 5-year-old daily poll tracking
economic confidence and spending intentions of nearly 8,200 consumers
throughout the month, climbed 0.2 points to 96.7. The Monitor remains at
its highest level since October 2007.
In April, 39 percent of respondents rated their personal finances as
good or excellent, a 3-point increase from the month before. At the same
time, high gas prices appear to be taking their toll on spending.
According to the poll, more than half of respondents said that high gas
prices are forcing them to change summer vacation plans, while 61
percent said that the high gas prices may cause them to cut back on
discretionary spending.
Highlights of Discover U.S. Spending Monitor Results
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February
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March
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April
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2012
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2012
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2012
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Discover U.S. Spending Monitor Index
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94.9
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96.5
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96.7
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U.S. Economy Improving
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32%
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35%
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33%
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Personal Finances Improving
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24%
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25%
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27%
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The result of higher gas prices is felt most acutely among younger
respondents and people of households earning less than $40,000 annually.
Of those in households earning less than $40,000 annually, 74 percent
said they have had to change spending plans because of high gas prices,
with 65 percent of that group saying they have also had to change
vacation plans.
Overall Spending Remains Steady
More consumers reported in April that they are spending about the same
as the month earlier and that they plan to spend about the same next
month. In April, 42 percent reported spending about the same as the
month earlier, compared to March’s figure of 41 percent. At the same
time, 50 percent are planning to spend the same in May, a rise of 2
percentage points from the month earlier.
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Only 44 percent reported that they would spend more next month on
household expenses, which is a drop of 8 percentage points from March.
Of respondents, 46 percent said they would spend the same next month
on household expenses, which is a jump of 7 percentage points from the
month earlier.
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Overall, 45 percent of respondents said they would spend less next
month on major personal purchases, such as vacations, a 1-point
increase from March and inconsistent with past Monitor surveys during
this time of year. Prior surveys usually show an increase in the
number of consumers planning to spend more in this category as they
plan their summer vacations. High gas prices may be altering summer
plans.
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At the same time, spending intentions for home improvements inched up
slightly: 18 percent said they planned to spend more next month on
household improvements, which is the highest figure since June 2011
and consistent with spending intentions on home improvement in the
warmer months.
Consumers Rate Personal Finances at Highest Point since October 2008
Despite increasing concerns about the U.S. economy and rising gas
prices, more consumers reported positive attitudes about their personal
finances in April.
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Overall, 27 percent said their personal finances are getting better,
an increase of 2 percentage points over March. Feelings that personal
finances are getting worse remained flat.
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There was a big dose of optimism from consumers in households with
income of more than $75,000 annually. Forty-three percent said their
personal finances are improving, a 7-point increase from March and the
highest figure since January 2008.
Economic Attitudes Mixed
Sixteen percent of respondents now rate the U.S. economy as good or
excellent, compared to 13 percent who had that attitude in March. In
addition, the number of people who report the U.S. economy as poor
stayed at 50 percent.
At the same time, 47 percent said economic conditions are worsening – an
increase of 3 percentage points from March and the highest figure since
2012 began.
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The attitudes about the U.S. economy were mixed according to income
level. Fifty-five percent of consumers in households earning less than
$40,000 annually said the economy is getting worse, an increase of 8
percentage points from the month before.
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Among respondents in households earning between $40,000 and $75,000 a
year, 45 percent reported the economy was getting worse, which is a
decrease of 2 percentage points from the month before.
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For households earning more than $75,000 a year, 39 percent said that
the economy was getting worse, a slight increase from the month before.
About Discover U.S. Spending Monitor
The Discover U.S. Spending MonitorSM is a monthly index of
consumer spending intentions and capacity that is based on interviews
with a random sample of 8,200 U.S. adults conducted at a rate of 275 per
night. In addition to spending, the survey asks consumers their opinions
on the U.S. economy and their personal finances. The Monitor began in
May 2007 with a base index of 100. Surveys are conducted by Rasmussen
Reports, an independent survey research firm (http://www.rasmussenreports.com).
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