Consumers Say Recession is Over.

New consumer data revealed today at a special presentation hosted by public and investor relations counsel Edward Howard & Co. at the Cleveland City Club shows that eight months after the September 11 terrorist attacks, a record number of American consumers are more confident and optimistic about the future and have regained a sense of normalcy. However, at the same time, many business leaders continue to remain cautious.

“Consumers have been out of the recession for over a year, and their attitudes and behavior prove they are not just talking about it but doing something about it,” said Paul Leinberger, senior vice president and managing director of Roper ASW, based on findings from Roper Reports, the nation’s pre-eminent ongoing tracking survey of consumers’ attitudes and behavior. “Yet many business leaders are still overly cautious and still retrenching,” said Leinberger. “This is creating winning opportunities for businesses which are giving consumers compelling reasons to buy their products.”

The data was revealed by Leinberger during the Edward Howard & Co. presentation, Reclaiming the Future: New Realities for Consumers, Marketers and Brands. Among the highlights from today’s presentation:

* Consumers are optimistic about the future of the country, according to a record 65% of consumers polled. This represents a six-point increase since September 11, 2001, and 16 points higher than the 49% average during 1973-2001.

* Consumers are optimistic about 2002. Fifty-three percent of consumers polled said they expect 2002 to be better than 2001, up 6 points from 2000. There have been only three times in the past 29 years where there have been increases this large.

* A welcome sense of normalcy has returned as consumers say they plan to conduct the following activities over the next three months: traveling on vacation, up 17 points; going to the movies, up nine points; eating out, up nine points; and traveling on business, up seven points. (The preceding represents increases since the last survey was conducted on September 18, 2001.)

* Products are not equal in the eyes of the consumer; there is a renewed emphasis on price and quality. What’s more, products viewed as commodities are at risk, as 64% of consumers, up 13 points from 1998, say comparative price is among the most important brand criteria. At the same time, 61% of consumers, up 15 points, cite quality as the most important brand criteria.

“Timely marketing intelligence should always be considered when determining how and when businesses should position themselves. Roper Reports has identified a dramatic disconnect between strong consumer confidence levels and moderate business cautiousness. This presents a unique opening in the current marketplace. To differentiate from competitors and capitalize on this window of opportunity, businesses should act now to market themselves boldly during our gradual emergence from the recession,” said Kathleen Obert, chairman and chief executive officer of Edward Howard & Co.