Midwesterners Wary but More Hopeful about 2013
COLUMBUS, Ohio – In its first survey of Midwest residents, Huntington Bank finds them cautious but optimistic about the direction of the U.S. economy in 2013.
The bank released the results of its inaugural Midwest Economic Index Tuesday, in which Echo Research conducted 2,133 online interviews between Nov. 12 and 20 with residents of Ohio, Michigan, western Pennsylvania, greater Indianapolis and West Virginia.
While fewer than half of those who responded to the survey think the economy will be better next year, a majority plan to spend on home improvements -- and pay for them in cash -- and to take vacations. This is significant, Huntington noted, because the markets it serves have “outpaced the national economic recovery in terms of aggregate employment.”
The survey also found most respondents will spend as much or more on holiday purchases this year than last.
“The survey confirms our analysis that the economy is slowly recovering and that consumers are ready to spend more discretionary dollars,” said the chairman, president and CEO of Huntington Bancshares Inc., Steven D. Steinour.
Among the findings:
- 52% of Midwest residents plan to make home improvements and more than half say they’ll pay for them in cash, up from 37% who completed such projects this year. Average budgeted amount next year is $5,200.
- Three in four Midwesterners plan to take vacations away from home next year, up from 63% this year. Average amount budgeted is $3,190 and more than three in five say they’ll pay upfront in cash.
- As many as 70% say they plan to spend as much or more on holiday season purchases this year as last; 56% said same as last year and 14% said more. Average amount budgeted this year is $959 with Ohioans planning to spend the most, an average of $1,022.
- And more than 70% of Midwesterners will spend as much or more in 2013 than they did this year on clothing, dining out and entertainment.
While Midwesterners are prepared to spend more on relatively lower-priced goods and services, the majority continue to defer major purchases, Huntington found. More than 60% said they would neither buy nor lease a new car next year.
Likewise, some 90% do not intend to buy or sell their homes next year. Nonetheless, just under half responded they think the real estate markets where they live are improving.
The margin of error for the surveys Echo conducted is +/- 2.1% at a 95% confidence level.
Published by The Business Journal, Youngstown, Ohio.
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