Consumer Payment Card News

Jan Spend

Thanks to a late push from the “Obama Factor,” economic confidence among consumers slowly rebounded pushing spending up slightly in January. However, the percentage of Americans
who plan to spend less in the following month, 29%, is greater than the
percentage that plan to spend more, 17%. The Discover “U.S. Spending
Monitor” rose 1.2 points in January to 77.8. The monthly survey found
that a near-record 55% of Americans were prepared to spend less on
discretionary categories like entertainment, dining out and movies next
month. About 52% are cutting back on household improvements and 51% are
cutting major personal purchases. A record high of 70% are either
holding the line or spending less for household expenses. Discover says
for the seven days ending January 28th, the “Monitor” dipped more than 3
points. Fueling the decline was a 4-point drop in economic confidence
and a 3-point plunge in the index measuring consumer spending
intentions. The fall coincided with a barrage of post-inauguration news
about job cuts.

                U.S. Spending Monitor
                    Jan 08: 86.1
                    Feb 08: 86.4
                    Mar 08: 85.1
                    Apr 08: 85.4
                    May 08: 86.8
                    Jun 08: 85.9
                    Jul 08: 85.2
                    Aug 08: 87.8
                    Sep 08: 86.5
                    Oct 08: 80.4
                    Nov 08: 79.7
                    Dec 08: 76.6
                    Jan 09: 77.8
                  Source: Discover

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