Looming State Of War Impacts State Of Consumer Spending.

As President Bush moves closer to a War against Iraq, a new joint survey finds that more than two thirds (69%) of Americans are paying attention and are following the events in the Middle East “closely.” According to a survey of more than 300 Americans by Universal McCann and InsightExpress Americans are uneasy about economic conditions at home, as 70% characterize the overall economy as “weak.”

While the US economy continues to struggle and the events in the Middle East unfold, consumers are holding back on spending, even on items that may be deemed affordable. The new survey found that Americans are cutting back on everyday items and taking a wait and see approach. More specifically they are cutting back on the following:

Expense / Percent of Americans Spending LESS on Everyday Items

Going to the Movies – 42%
Eating Out at Fast Food Restaurants – 41%
Home Electronics – 37%
Alcoholic Beverages – 36%
Eating Out – Casual Dining – 35%
Household Appliances – 35%
In-home media entertainment – 32%
Home improvement or repair – 30%
A favorite activity or hobby – 28%

“Clearly Americans are exercising restraint when it comes to spending,” said Jon Swallen, Senior VP, Director of Media Knowledge, Universal McCann. “Not only are people cutting back on big ticket items, but they are also spending less on relatively inexpensive entertainment activities like dining out.”

Discretionary spending isn’t the only area of the economy being affected.

According to survey participants, half of all Americans feel that now is a bad time to look for a job, while one third feel that flying on a plane (33%) or taking a vacation trip (30%) is a bad idea.

The survey was created, distributed and tabulated during a 24-hour period in mid-March 2003. The data has a tolerance of +/- 5.66%.