Consumers Cutting Back

Some 58% of Americans feel that the economy has reached a low point and nearly half (47%) think it will stay this way for a while, prompting spending cutbacks on nearly everything - from charitable contributions to dining out to beauty and grooming products, according to the November/December 2008 Insight Report from MarketTools, Inc.

71% of all respondents are reducing dining out costs today vs. 66% in the last survey in April 2008.
34% of households are cutting back on purchases of beauty or grooming products compared with 27%previously.
30% of households are reducing spending on kids’ toys and games, despite the holiday, compared with 25% of households in the last report.
19% of respondents are cutting back on purchasing non-prescription medications compared to 16% in the last survey.

“Although more than half of Americans are feeling impacted by the economy this holiday season, consumers will still be making purchases,” said Beth Rounds, SVP of research solutions at MarketTools. “This economic crisis will outlast the holiday season, so companies need to listen to their customers to understand how consumers are responding to budgetary pressures.”