Retail Spending Shows Signs of Spring Uptick
YONKERS, N.Y. -- Consumers' lethargic outlook continues to take a toll on retail spending, according to the latest Consumer Reports Index. On the plus side, the index shows an uptick in planned spending over the next 30 days for major appliances, small appliances and major yard and garden equipment as consumers prepare for summer.
The past 30-day retail measure of the index fell for the third straight month. Its sentiment measure was unchanged at 50.1. Looking at the longer trend, consumers' attitudes concerning the economy have been stuck in a narrow band of between 51.2 and 48.9 since November 2012.
Among the larger retail categories the Consumer Reports Index tracks, consumer interest in future home buying increased slightly. Planned spending in the next 30 days was 2.4%, up from 1.4%.
The trouble tracker measure of the overall financial difficulties consumers face, which had declined three straight months, rose in March. The sharpest increase of those in financial trouble was among adults in households earning $100,000 and more. However, the most hard-pressed consumers continue to be those in households that earn less than $50,000.
The employment measure improved slightly, rising to 50.8 from 49.9 a month earlier. The employment measure reflects that the proportion of Americans starting a new job is slightly ahead of those who lost a job. The highest gains were in households earning less than $50,000 and adults with a high-school degree or less. Middle-income Americans lost ground, with the employment measure declining into negative territory (below 50).
"At best, consumers feel the economy is treading water," said Ed Farrell, director of consumer insight at the Consumer Reports National Research Center. "They are still holding back on spending, largely due to the uncertainty they feel."
The level of stress that consumers feel was unchanged from last month. The stress measure is 56.5. The most stressed Americans are those in households that earn less than $50,000 (59.5), are ages 35 to 64 (57.5), and those in the Northeast (61.2).
The Consumer Reports Index, conducted by the Consumer Reports National Research Center, is a monthly telephone and cell phone poll of a nationally representative sample of American adults.
Published by The Business Journal, Youngstown, Ohio.
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