But is spending coming back?
Of those who have made spending cuts, three-quarters of them (76%) have still not increased their spending. Just one-quarter (24%) of those who made spending cuts have increased their spending. Just one in twenty (4%) have increased spending to what it was while 21% have increased their spending but it is less than what it was. Younger people aged 18-34 are slightly more likely to have increased their spending (29%) as are those aged 45-54 (28%) and who have household incomes of $75,000 or more.
Could "Made in America" spur spending?
If something is advertised as "Made in America" is there a sense of patriotism in purchase intent? The answer seems to be yes as three in five Americans (59%) say they are more likely to buy a product if it is advertised as "Made in America". For over one-third of Americans (37%) citing something as "Made in America" in an ad will make them neither more nor less likely to buy it while just 3% say they are less likely to buy something advertised as "Made in America".
There is definitely an age difference in how this phrase spurs people’s purchase intent. Three-quarters of those aged 55 and older (74%), two-thirds of those aged 45-54 (68%) and three in five of those aged 35-44 (60%) all say they are more likely to buy a product advertised as “Made in America”. Among those aged 18-34, this number drops to 39% and almost three in five (57%) say a product advertised as ‘Made in America” makes them neither more nor less likely to buy it.
So What?
While most economists are starting to say the economy is turning around or that the recession is coming to a close, consumers may not be of the same mind. One thing to watch is the way Americans start to spend money again. If they are still not spending, the likelihood is they may hear the same news, but have yet to believe it. And, that is what we are seeing here – they are not yet ready to start spending and this means the economic woes may continue until the wallets are re-opened.
