Recent surveys show that Americans still want to buy gasoline, though they are cutting spending levels in other retail areas.
Empathica Inc., a global provider of Customer Experience Management (CEM) solutions to more than 200 of the world’s respected brands, announced Thursday that its Consumer Insights Panel survey of 6,500 U.S. consumers found that consumers plan to cut their expenses across nearly every spending category.
Fine dining, furnishings and electronics are listed as the highest areas of decline. In contrast, staple products and services such as gas, pharmacy and grocery will see less decline compared to findings from this time the previous year.
Survey results show that consumers are cutting the least on gas with nearly nine out of 10 consumers spending the same or more on it. As for groceries, only one in five consumers reported that a spending reduction will be necessary.
Top Segments Where U.S. Consumers Cut Spending:
- Fine Dining– 71%
- Furnishing– 69%
- Electronics– 65%
- Bars– 64%
- Airlines– 62%
- Hotels– 61%
- Clothing– 58%
- Department Stores– 55%
- Casual Dining– 50%
- Home Improvement– 49%
- Convenience Stores– 45%
- QSR / Fast Food– 42%
- Pharmacy– 25%
- Supermarket / Grocery– 18%
- Gas Stations– 16%
“The economy is affecting American consumers just as we expected with specific segments continuing to be challenged,” said Gary Edwards, chief customer officer, to Empathica. “The economy as a whole is still on the mend, and although we are starting to see an uptick int he job market, it doesn’t necessarily mean consumers are eager to spend. Uncertainty still remains along consumers with continued caution around spending on non-essentials.”
Survey results found that the top two reasons consumers are cutting on spending include concern about taking on more debt and having to pay more for basic housing and utility costs, so there is less money to spend on other things. The top three areas of concern were economy (31%), debt (25%) and job security (19%). Consumers were less concerned about environment, crime and housing.
Empathica Consumer Insights serves as an authoritative voice on consumer-based economic indicators with retail, financial, and restaurant industries.