Recession still affecting consumer spending
May 11, 2009
by Bakingbusiness Staff
CHICAGO — Consumers are still concerned about the U.S. economy as well as their personal financial situation and job security, according to market researchers Technomic, Inc.
"Consumers express a strong desire to economize," said Bob Goldin, Technomic executive vice-president. "This is apparent in the large number who plan to scale back visits to high-priced restaurants and coffee shops, reduce spending at restaurants and other retail venues, increase purchases of store-brand groceries, make more meals at home, use coupons and take advantage of discounts and deals."
Technomic said 51% of consumers believe the economy will worsen this year, and only 26% believe it will improve. In addition, 87% said they intend to save more and spend less compared with 74% who said the same in December 2008. Given all of the factors, Mr. Goldin said a near-term rebound in consumer spending is highly unlikely.