Consumer Payment Card News

Rebound?

Consumers are feeling better about the general U.S. economy. The Discover “U.S. Spending Monitor” jumped a record 4.7 points in April to 84.2. In three months this number went from a Monitor low 8% in February to a Monitor high in April. The growing economic optimism among consumers coincided with a sharp drop in the number who thought things were getting worse. In April, a Monitor low of 51% said the economy was getting worse, 10 points lower than March and 7 points lower than the previous low, 58%, set back in July 2007. In April, 50% of consumers planned on cutting back their discretionary spending. While still significant, this is the lowest this number has been since March 2008. Consumers are also showing a little less spending restraint in other areas as well. Fifty percent of consumers are planning to spend less on home improvement purchases, down 2 points from March, and 48% are planning to spend less on major personal purchases like a vacation, down 3 points from March and the first time this number has been below 50 percent since September.

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