Abstract
In spite of rising energy prices, a turbulent stock market and an ongoing state of war, US consumers have continued to spend. While this spending has prevented the economy from slipping, it has come at the cost of decreased individual savings and increased personal debt. Mintel takes a closer look at how consumers are handling these changes in their economy.
With exclusive consumer research, Mintel explores:
- what consumers are doing to decrease expenses in reaction to rising gas prices
- who is most affected by interest rate hikes
- which consumers are saving less every year and why
- which demographics are more likely to splurge on extra purchases and how they finance these increased expenditures
- who is at the greatest risk from the current mortgage lending crisis
This Mintel report discusses consumer spending and saving habits in response to recent economic changes. Consumer confidence is analyzed in light of self-reported spending and saving habits to create a picture of the everyday consumers' attitudes toward and reactions to the economy.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Survey methodology
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Consumer spending keeps growing as Americans become wealthier
- Aging boomers shift spending share to 55-65 year olds
- Personal savings shrinks as consumers spend more
- Consumer debt grows with inflation while mortgage debt finances increased buying power
- Blacks and Hispanics differ culturally in spending habits
- Women more reactionary when it comes to gas prices and interest rates
- Children in the household drive expenditures
- Gas prices likely to stay high, while interest rates stay reactive
- Background Factors
- Average consumer expenditures
- Figure 1: Average consumer expenditure, at current and constant prices, 2002-07
- Consumer confidence
- Figure 2: Consumer confidence levels and aggregate consumer expenditures, 2001-06
- Figure 3: Change in aggregate consumer expenditure, by category, 2003-04
- Aging Boomers boost the spending of over-55s
- Figure 4: Growth of the U.S. population, by age, 2002, 2007 & 2012
- Figure 5: Share of total aggregate consumer expenditure, by age, 2001 and 2006
- Hispanics grow past black consumers in spending
- Figure 6: Population by race and Hispanic origin, 2002-12
- Figure 7: Share of total aggregate consumer expenditure, by race/ethnicity, 2001 and 2006
- Americans becoming wealthier
- Figure 8: Distribution of households, by income, 2003 and 2006
- Nearly all parties financially aware
- Figure 9: Financially responsible party, by gender, November 2007
- Events impacting personal finance
- Figure 10: Events affecting personal finance, November 2007
- Attitudes towards spending and personal finance
- Figure 11: Attitudes towards personal finance, May 2006-June 2007
- Figure 12: Attitudes toward spending, November 2007
- Gender
- Figure 13: Attitudes towards personal finance, by gender, May 2006-June 2007
- Figure 14: Attitudes towards spending, by gender, November 2007
- Age
- Figure 15: Attitudes towards personal finance, by age, May 2006-June 2007
- Figure 16: Attitudes towards spending, by age, November 2007
- Household income
- Figure 17: Attitudes towards personal finance, by household income, May 2006-June 2007
- Figure 18: Attitudes towards spending, by household income, November 2007
- Race/ethnicity
- Figure 19: Attitudes towards personal finance, by race/ethnicity, May 2006-June 2007
- Figure 20: Attitudes towards spending, by race/ethnicity, November 2007
- Presence of children in the household
- Figure 21: Attitudes towards personal finance, by presence of children in household, May 2006-June 2007
- Figure 22: Attitudes towards spending, by presence of children in household, November 2007
- Economic Indicators
- Summary
- Gas prices
- Figure 23: Consumer confidence levels and change in annual average gas prices, 1999-2007*
- Figure 24: Consumer expenditure on gasoline and motor oil, at current and constant prices, 2002-07
- Figure 25: Consumer expenditures on gasoline and motor oil, as a percentage of total expenditures, 2000-06
- How gas prices affect spending
- Figure 26: Expected impact of gas prices on spending, November 2007
- Figure 27: Changes in spending as a result of gas price rises, by household income, November 2007
- Figure 28: Changes in spending as a result of gas price rises, by gender, November 2007
- Increased spending
- Figure 29: Changes in spending as a result of gas price rises, by age, November 2007
- How consumers have adjusted to gas prices
- Figure 30: Changes in spending due to rising gas prices over the past year, November 2007
- Figure 31: Changes in spending due to rising gas prices over the past year, by gender, November 2007
- Figure 32: Changes in spending due to rising gas prices over the past year, by age, November 2007
- Figure 33: Changes in spending due to rising gas prices over the past year, by household income, November 2007
- Figure 34: Changes in spending due to rising gas prices over the past year, by race/ethnicity, November 2007
- Figure 35: Changes in spending due to rising gas prices over the past year, by presence of children in household, November 2007
- Interest rates
- Figure 36: Consumer confidence levels and national federal funds rates, 1998-2007*
- Figure 37: Consumer expenditures on mortgage interest and charges, at current and constant prices, 2001-06
- How interest rates affect spending
- Figure 38: Changes in spending due to changing interest rates, November 2007
- Figure 39: Cuts in spending due to rising interest rates, by age, November 2007
- Figure 40: Cuts in spending due to rising interest rates, by household income, November 2007
- Figure 41: Cuts in spending due to rising interest rates, by presence of children in household, November 2007
- Figure 42: Cuts in spending due to rising interest rates, by race/ethnicity, November 2007
- Increased spending
- Figure 43: Increase in spending due to falling interest rates, by age, November 2007
- Unemployment
- Figure 44: Consumer confidence levels and annual unemployment rates, 1999-2007*
- How unemployment affects spending
- Figure 45: Changes in spending due to changing rates of unemployment, November 2007
- Stock market
- Figure 46: Consumer confidence levels and the dow jones industrial average, 1998-2007*
- How stock market performance affects spending
- Figure 47: Changes in spending due to the changing stock market, November 2007
- Sources of and interest in financial news
- Figure 48: Sources of and interest in financial news, November 2007
- Figure 49: Sources of and interest in financial news, by gender, November 2007
- Figure 50: Sources of and interest in financial news, by age, November 2007
- Figure 51: Sources of and interest in financial news, by household income, November 2007
- Figure 52: Sources of and interest in financial news, by race/ethnicity, November 2007
- Savings & Debt
- Summary
- Personal savings
- Consumer debt
- Personal savings
- Figure 53: Aggregate U.S. personal savings, at current and constant prices, 2002-07
- Figure 54: Aggregate personal savings, by quarter, 2003-07
- Individual savings rate
- Figure 55: Changes in salary and saving position in past year, November 2007
- Figure 56: Changes in salary and saving position in past year, by gender, November 2007
- Figure 57: Changes in salary and saving position in past year, by age, November 2007
- Figure 58: Changes in salary and saving position in past year, by household income, November 2007
- Figure 59: Changes in salary and saving position in past year, by race/ethnicity, November 2007
- Figure 60: Changes in salary and saving position in past year, by presence of children in household, November 2007
- Reasons for negative savings
- Figure 61: Reasons for negative savings, November 2007 Figure 62: Reasons for negative savings, by age, November 2007
- Figure 63: Reasons for negative savings, by household income, November 2007
- Figure 64: Reasons for negative savings, by race/ethnicity, November 2007
- Figure 65: Reasons for negative savings, by presence of children in household, November 2007
- Consumer debt
- Figure 66: U.S. debt per consumer unit, at current and constant prices, 2002-07
- Figure 67: Growth of total outstanding consumer debt and home mortgage debt, 2000-07*
- Figure 68: Aggregate U.S. consumer debt and debt service as percentage of income, 2002-07*
- Types and amounts of debt
- Figure 69: Types of loans carried, May 2006-June 2007
- Figure 70: Average levels of indebtedness, by type of debt, November 2007
- Figure 71: Average levels of indebtedness, by type of debt, by age, November 2007
- Figure 72: Average levels of indebtedness, by type of debt, by household income, November 2007
- Figure 73: Average levels of indebtedness, by type of debt, by presence of children in the household, November 2007
- Future Trends
- Gas prices
- Interest rates
- Mortgage crisis
- Economy braces for consumer pullback
