Consumers Are Saving More and Spending and Borrowing LessLocation: Rochester Americans are continuing to tighten their belts with almost two-thirds (63%) of Americans saying they are spending less overall and two-thirds (64%) saying they are less likely to take out a loan. They are also weaning themselves from plastic with one-third (33%) saying they are using their credit card less often than before. These are the some of the results of The Harris Poll, a new nationwide survey of 2,681 U.S. Adults surveyed online between May 11 and May 18, 2009 by Harris Interactive. Other changes in how Americans are spending, saving and borrowing behaviors include:
So what? The economic crisis has profoundly affected consumers’ spending, saving and borrowing. Despite some shots of good news about the economy, consumers are not ready to start spending as they did before the economic crisis. But consumers don’t have to be alone during this crisis. Financial services firms can partner with them to help people save wisely and to borrow responsibly. Producers of consumer goods and services can help consumers economize by communicating value as well as small luxuries or simple pleasures. Companies might want to look into “giving back” to their communities at a time when Americans who do not have a cushion may be in need of help. It is especially important to communicate optimism so that Americans can begin to gain back confidence in their economic futures.
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