* Almost three in five Americans (58%) say that their household’s financial condition has worsened when compared to a year ago, while 28% say it has remained the same and just 14% say it has improved. When asked last July, just under half (48%) said their household’s financial condition had worsened while three in ten (31%) said it had improved;
* Projected 6 months from now, one-third (33%) of Americans believe their household’s financial condition will be worse and 43% say it will be the same. Just one-quarter (24%) believe their financial situation will be better. In July, this was more even as 39% said things would be worse in 6 months and 36% believed things would be better;
* Looking at the economic conditions of their region of the country (74%) would rate the economic conditions of their region as bad while just 10% say it is good and 16% say it is neither good nor bad; and,
* When it comes to the economic conditions in their region, Americans are not optimistic.. Over half (53%) say they are pessimistic about the economy of their region over the next 6 months while one-quarter (24%) are optimistic and 23% are neither optimistic nor pessimistic.
Does Region Matter?
Different regions of the country are feeling different impacts of the current economic conditions:
* Easterners are more likely to say their financial situation has worsened (66%) and that it will be worse six months from now (41%). They and Midwesterners are more likely to believe the economic conditions of their region of the country is bad (79% each) and they are both more likely to be pessimistic about it over the next six months (61% each);
* Southerners are more optimistic in general. They are more likely to say their financial situation will be better 6 months from now (30%) and are more optimistic about the economic conditions of their region over the next 6 months (32%).
Spending/Saving Changes over Next 6 Months
Americans are cutting back on their spending over the next six months. Specifically:
* Almost two-thirds of Americans say it is likely that they will decrease spending on eating out in restaurants (65%) and reduce their spending on entertainment (64%);
* Seven in ten (71%) of Americans say it is not likely they will take a vacation away from home lasting longer than a week;
* Large purchases will also suffer as more than three-quarters of Americans say it is not likely they will buy a new computer (78%), move to a different residence (82%), buy or lease a new car, truck or van (88%), purchase a house or condo (90%), start a new business (91%) or buy a boat or recreational vehicle (95%);
* Three-quarters of Americans (75%) say it is not likely they will have more money to spend the way they want in the next six months; and,
* People are split on saving or investing as 49% say it is likely they will save or invest more money while 51% say it is not likely they will do so.
So What?
The American sense of optimism has faded to despair and is deepening every day that the economic crisis continues. People are hunkering down for more, and prolonged economic hardships and have taken steps to protect themselves for the next six months by not spending - no big ticket items, no vacations, no eating out and no entertainment. Until the new Presidential administration works through a comprehensive economic stimulus package, Americans will do what is best for them - spend less and wait it out.
