American Express: Consumer Spending Shows Shift in Value and Values

While the economy continues to struggle toward recovery, American consumers remain cautious about opening their wallets, according to American Express.

While 60 percent of respondents who participated in the first American Express Spending & Saving Tracker said they intend to spend about the same or more in the next 30 days, (compared to the last 30 days), 40 percent plan to spend less.

Today's American Express Spending & Saving Tracker is the first in a monthly series of reports about consumers' views about the economy and what is motivating them to spend and save. The research sample of 2,032 adults surveyed the general U.S. population1, as well as two sub-groups - the affluent2 and young professionals3.

As described by the Company, key findings included:

- Young professionals were more optimistic about the economy and more likely to increase spending during the next 30 days (24 percent versus 14 percent of the affluent and 10 percent of the general population).

- When young professionals who plan to spend more were asked what they would be spending it on, two thirds said clothing (65 percent), and more than half said dining out (54 percent) and travel (53 percent).

- Among the general population, about one-half of consumers who expect to spend more said they plan to increase their spending on groceries and clothes (49 percent each).

- The affluent who expect to spend more said it would be on travel (56 percent), dining out (47 percent) and clothes (43 percent).

"One year after the collapse of the financial markets, the American Express Spending & Saving Tracker shows that there has been a shift in how consumers are expressing their wants and needs," said Pamela Codispoti, American Express Senior Vice President and General Manager, Cardmember Services. "We may now be at a point when many consumers have taken stock of their financial situation and have a better handle on what their spending and saving plans are in the current economy. I don't think anyone expects the American consumer to quickly return to the spending levels of the last few years, but amid their cautiousness we are seeing some areas where people are willing to increase spending."

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