With everyone worried about the economy, gas prices, and the stock market, Greenfield Online surveyed approximately 1,000 respondents via our U.S. omnibus to find out their opinions about the recent economic downturn and how they are handling it.
When asked whether or not they had been affected by the recent economic downturn, a total of 64% responded that, “Yes they were impacted by the recent economic downturn.” The 24 and under group apparently feels the least impact, and the 55 and over group appear to be bearing a little more of the weight according to the responses. (See chart)
In addition, as might be might be expected, 91% of those impacted by the economy claim to have changed their spending patterns as a result.
Respondents have changed their spending patterns in these primary areas:
1) Driving less often to conserve gasoline (79% of those of have altered their spending habits) – Combining trips can become an art form, unless of course you have non-driving teenagers, then there is no hope.
2) Being more mindful about unnecessary spending on clothing purchases or entertainment, such as going to the movies (78% of those of have altered their spending habits) – If you rent a “pay-per-view” not only do you save on the movie tickets, but you conserve gas, too.
3) Eating out less often (74% of those of have altered their spending habits) – Suddenly a home cooked meal is tasting better and better, even if you’re the one doing the cooking.
4) Using coupons (61% of those of have altered their spending habits) – This really works, unless it forces you to drive to three different stores to take advantage of the savings.
5) Putting off luxury purchases like expensive handbags or shoes (51%) – Unless you’re Carrie Bradshaw, no more Manolo’s!
6) Eliminated their vacation (51% of those of have altered their spending habits) – This was the summer of “at home” or “sta-cations” vacations.
7) Putting off large financial decisions like the purchase of a car, even if needed (44% of those of have altered their spending habits) – Bessie will just have to make it for another 15,000 miles, and finally…
8) Managing to a budget (35%) – Did someone say budget? Must I?
Although gasoline prices have come down from their highs nationwide, 34% of respondents still state that ever-fluctuating fuel prices are still their biggest single concern about the economy. This second most important factor is their concerns about their 401K and/or retirement savings accounts, which, of those who have them, 17% said it keeps going down in value.
When we asked respondents how they feel about today’s economy versus the economy four years ago, 88% claimed to feel worse about the economy today than they did in 2004. 10% of respondents feel about the same, and a scant 2% of respondents actually feel better about the economy than they did four years ago (we want to meet these people!).
As for investing in the stock market, interestingly, 58% of respondents said they simply don’t do it. 23% said they will continue to invest despite the economic uncertainty and 13% had either made a planned move to cash or sold their investments.