Consumer Confidence in the Economy and Personal Finances Lifts
Index, Reversing a 4-Month Decline
RIVERWOODS, Ill.--(BUSINESS WIRE)--Oct. 3, 2012--
An increase in economic confidence at the end of September pushed the
Discover U.S. Spending Monitor up 2.7 points to 91.3 in September,
reversing a 4-month decline. The Monitor is a 5-year-old daily poll
tracking economic confidence and spending intentions of nearly 8,200
consumers throughout the month. The 91.3 reported in September’s Monitor
is 14.3 points higher than what was reported a year ago.
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Highlights of Discover U.S. Spending Monitor Results
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July
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August
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September
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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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89.3
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88.6
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91.3
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U.S. Economy Improving
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28%
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26%
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30%
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Personal Finances Improving
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23%
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20%
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23%
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More Consumers Believe Economy is on the Mend
The percent of consumers rating the U.S. economy as good or excellent
increased 2 points to 13 percent from August, and those viewing it as
poor remained at the same level as August at 56 percent. However, this
is 10 points lower than the 66 percent of consumers who rated the
economy as poor in September 2011.
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The number of male respondents who rate the economy as poor in
September declined 14 points year-over-year to 56 percent; female
respondents with the same rating declined 8 points year-over-year to
56 percent.
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Respondents expecting the economy to improve increased 4 percentage
points from the prior month to 30 percent. This is also up
year-over-year by 18 points.
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Consumers with an income of greater than $75,000 had the highest
percentage of any income level in September expecting the economy to
improve, at 39 percent, versus 29 percent for those making between
$40,000 and $75,000, and 25 percent for those making less than $40,000.
Increasingly Optimistic Views About Personal Finances After 4-Month
Decline
While consumers’ current views about their personal finances remained
the same as August, they were increasingly optimistic that their
personal finances will improve in the month ahead.
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23 percent of respondents expect their personal finances to improve,
an increase of 3 points from the previous month, and reversing a
4-month decline.
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There was an increase in the number of women who expect their personal
finances to get better, up 5 points from August to 23 percent. Men
expecting their personal finances to improve increased 1 point during
the same timeframe to 24 percent.
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Additionally, more women believe they would be able to maintain their
current lifestyle for six or more months if their current income was
lost, up 5 points from August to 21 percent. Twenty-seven percent of
men believe the same, a 2-point increase from last month.
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Despite this positive outlook, little changed in how respondents
currently rate their personal finances in September, with 34 percent
rating their personal finances as good or excellent, equal to August,
40 percent rating them as fair, up 1 point from August, and 24 percent
rating them as poor, unchanged from August.
Discretionary Spending Intentions Decline, as Household Expenses
Increase
Despite the brighter economic and financial outlook from consumers,
overall spending intentions declined. While 49 percent of consumers plan
to spend the same next month, down 1 point from August, those planning
to spend less next month increased 2 points to 19 percent.
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50 percent of consumers expect to spend less on discretionary
entertainment expenses next month, unchanged from August, while 9
percent plan to spend more, down 1 point.
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48 percent expect to spend less on major personal purchases like a
vacation, up 2 points from August, while only 10 percent plan to spend
more, down 5 points from the prior month.
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48 percent plan to spend less on household improvements, unchanged
from August.
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45 percent of consumers expect to spend more on household expenses,
such as gas and groceries, in the next month, up 1 point from August.
This number is also up 6 points year-over-year.
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 home loans, private
student loans, personal loans, online savings accounts, certificates of
deposit and money market accounts through its direct
banking business. 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 www.discoverfinancial.com.
Source: Discover Financial Services
Discover
Matthew Towson, 224-405-5649
matthewtowson@discover.com