Economic Confidence on the Rise, But Consumers Remain Cautious on Spending
Riverwoods, IL, June 5, 2013- The Discover U.S. Spending Monitor dropped by one point in May to 92.6, as consumers reported higher confidence in the economy, but lower confidence in their personal finances. While overall spending intentions stayed the same, consumers were more likely to increase their discretionary spending in areas such as home improvements, personal purchases and major purchases like a vacation. The Monitor is a 5-year-old daily poll tracking economic confidence and spending intentions of nearly 8,200 consumers throughout the month.
Economic Outlook
- Respondents rating the economy as good or excellent increased 2 percentage points to 19 percent in May.
- Female respondents grew increasingly positive about their economic outlook. The number of women rating the economy as good or excellent increased 4 points to 19 percent, bringing them in line with men of the same outlook, who remained flat at 20 percent.
- Income also affected economic outlook in May. Consumers making more than $75,000 showed a significantly brighter outlook, with a 5 percentage-point increase to 30 percent of people who rate the economy as good or excellent.
- Those making less than $40,000 who rated the economy as good or excellent increased 2 percentage points to 16 percent, while 19 percent of middle-income consumers ($40,000-$75,000) had the same rating, a decline of 1 percentage point.
- Overall, respondents who expect the U.S. economy to get better increased 1 point to 32 percent.
- Those who expect the economy to decline decreased 2 points, to 45 percent.
- Consumers expecting the economy to stay the same increased 2 points to 18 percent.
Personal Finances
- Contrary to the increase in economic confidence, consumer outlook on personal finances declined in May.
- Consumers rating their finances as good or excellent decreased 2 percentage points to 33 percent.
- Those who said their finances are improving also decreased by 1 percentage point to 25 percent.
- Respondents who said they will have money left over after paying their bills this month dropped 3 percentage points to 45 percent.
- Gender also played a role in financial outlook this month. Men who said their personal finances are getting better declined 3 percentage points to 25 percent, while women who said the same increased 1 point to 25 percent.
Spending Intentions
- In May, the number of respondents who intend to spend more next month stayed relatively flat with a 1 percentage-point decline to 27 percent. More people are planning to spend the same next month, with a 2-point increase to 52 percent.
- Consumers were slightly more inclined to increase spending on going out to dinner or the movies, rising 2 percentage points to 11 percent.
- Those planning to spend more on major personal purchases like a vacation also increased by 1 percentage point to 15 percent.
- Consumers planning to spend more on home improvements remained the same at 17 percent.
- Intentions to save and invest more next month increased 1 point to 10 percent.
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, checking and 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
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