2008
 2009


Consumer
sentiment
 60.1
 65.1


Spending
trends
 ‐Less
spending
in
all
categories,
especially
in
 ‐Buying
durable
items
and
clothing
that
will
last

restaurants
and
travel
 ‐Restaurant
spending
slowly
beginning
to
increase,
as

‐Decline
in
spending
from
all
income
levels,
even
from
 well
as
for
consumer
electronics,
durable
goods
for
the

people
making
$150,000/year
and
more
 home,
and
home
repairs/improvements

‐Buying/using
less
gasoline
 ‐Slow
but
steady
increase
in
overall
consumer
spending

‐Discretionary
income
is
seen
as
reduced,
and
 so
far

consumers
respond
accordingly
by
staying
in
for
 

movies
instead
of
going
to
the
cinema,
drinking
at

home
instead
of
in
bars,
etc.

Consumer
perceptions
 ‐Current
economy
=
bad,
little
hope/expectations
for
 ‐Current
economy
=
bad,
but
hope
and
improved

improvement
 expectations
for
future


‐Believe
economy
is
worsening
(over
90%
believe
this)
 ‐Less
likely
to
anticipate
deflation

‐Expectations
for
deflation
in
following
year
 ‐Expectations
for
increasing
unemployment
and
very


 little
to
no
income
increases

‐Expectations
for
lower
prices
for
homes,
cars,
and

household
durables

Lifestyle
 ‐Rising
rates
of
obesity
 ‐Rising
rates
of
obesity

‐Less
dining
out
 ‐Beginning
to
eat
out
more—Starbucks
doing
well

‐Less
travel
 ‐Making
improvements/repairs
to
home

‐Movement
towards
eco‐friendly
consumer
choices
 ‐Environmentally
conscious
lifestyle
choices
continue

‐Growing
awareness
of
food
content
and
 with
organics,
energy
saving
household
items,
and

environmental
concern
spur
the
organic
&
sustainable
 hybrid
or
clean
diesel
cars

foods
movement

Factors/influences
 ‐Less
spending
due
to:
inflation,
high
energy
costs,
 ‐Consumer
faith/approval
in
Obama’s
stimulus
policies

trying
to
improve
personal
finances
by
reducing
debt
 from
many,
but
others
question
whether
or
not
he
is

or
saving
money
 capable
of
turning
the
economic
situation
around

‐Subprime
mortgage
crisis
stagnates
housing
market,
 ‐Job
market
beginning
to
stabilize

causing
mortgages
to
rise
and
people
to
move
around
 ‐Only
slight/slow
increases
because
consumers
still

less.
Some
consumers
previously
viewed
their
homes
 attempting
to
repair
their
finances

and
properties
as
part
of
their
assets,
so
those
people
 ‐Rising
health
care
costs
and
increased
unemployment

have
lost
out
and
are
tightening
their
budgets.
 have
impacted
all
Americans,
even
the
85%
who
are

‐Onset
of
a
second
Gilded
Age,
in
which
the
 insured.
Combination
of
illness
and
unemployment
has

 lifestyle/income
gap
between
the
vast
majority
of
 the
potential
to
bring
financial
ruin,
even
for
affluent

consumers
and
the
rich,
famous
and
powerful
is
very
 families.

great
and
very
obvious.
This
is
a
result
of
the
shrinking
 

middle
class.

Social
Mood
 ‐Unsatisfied
with
current
finances
 ‐Rising
consumer
confidence

‐Concerned
with
current
economy
and
the
future
 ‐Hopeful
and
optimistic
about
the
future

‐Growing
sense
of
uncertainty
 ‐Sense
of
renewal
can
be
felt
as
the
world’s
view
of

‐Jubilant
after
Obama’s
election,
and
around
 Americans
seems
to
be
changing
post‐Obama

inauguration
time
 ‐Sense
of
acceptance
of
the
current
situation—not
to
say

‐Dramatic
rise
in
consumer
fear
came
with
the
 that
consumers
are
okay
with
things
staying
the
way

economic
crash

 they
are,
but
for
the
time
being
they’re
learning
to
deal


 with
it
and
live
within
the
new
financial
constraints.

Analysis
 Overall
consumer
outlooks
were
pessimistic,
with
 So
far
2009
has
shown
promise
for
a
slowly
improving

expectations
for
a
worsening
economy
and
 economy
and
consumer
optimism.
Spending
is
beginning

dissatisfaction
with
current
finances.
Spending
 to
increase
as
consumer
confidence
rises
and
approval

decreased
across
the
board
as
consumers
of
all
 rates
of
Obama’s
stimulus
policies
are
high.
While

incomes
tried
to
reduce
their
debt
and
save
money
in
 reports
showed
that
consumers
expected
increasing

response
to
high
energy
costs
and
inflation
rates.
 unemployment
rates
in
April,
studies
in
October
showed

that
the
job
market
is
actually
beginning
to
stabilize.