According to The NPD Group, Inc., a leading market research company, the percentage of consumers who feel we are in tough times or a recession has increased since April. The latest results of NPD’s Fast Checks Study: Consumers Speak Out On the U.S. Economy conclude that, in May, 58% of consumers said we are in a recession, compared to 55% in April. What’s more, consumers are not only less optimistic about the economy; they are beginning to change their behaviors in response.
How are consumers reacting? The surveyed respondents said they are planning to spend less on things such as apparel and footwear. And with vacation season approaching, 49% of consumers said they plan to cut back on leisure travel.
The study uncovered additional information about consumers’ spending intentions. A greater percentage of consumers said they are spending less because they need to put money toward essentials, such as gas and utilities.
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“Consumers are finally starting to react to the price of gas and other rising costs and are shifting shopping intentions.” Cohen said. “(They) continue to display their intentions to spend, but now appear to be thinking twice before they actually do.”