Little change seen in Americans’ Spending.

Americans continue to describe the economy as bad and their reported action regarding larger purchases and non-essential spending supports this perspective. A recent Harris Poll on planned spending and saving shows that little has changed for Americans since January when these questions were last asked, and, in many cases not much has changed since late 2009, at the height of the financial crisis.

While slightly fewer Americans say they are likely to decrease spending on eating out in restaurants in the next six months (61%) than said so in either January 2011 (63%) or September 2010 (66%), this modest bump does not seem to speak to an overall trend. Rather, Americans are equally likely now as they were in January to say they will reduce spending on entertainment (59% for both) and even with the summer approaching Americans are somewhat less likely to say they will take a vacation away from home lasting longer than a week (34% now compared to 36% in January).

Additionally, while slightly greater numbers of Americans expect to save or invest more money in the next 6 months than expected to do so when asked in January (51% vs. 49%) fewer people now say that they will have more money to spend the way they want in the next 6 months (28% vs. 30%). It should be noted that this slight drop since January still represents an increase from the lower numbers saying they would have this kind of money to spend when these questions were asked throughout 2009 (between 21% and 27%).

Other findings from this poll include:

– Fully one quarter of U.S. adults say they are likely to purchase a new computer in the next 6 months (25%)-the highest percentage that has said so in the 9 times this question has been asked since November 2008;

– There is almost no change in those who say that they will purchase a house or condo (9% vs. 10% in January) or move to a different residence in the next six months (19% vs. 21%);

– Similar numbers say they will buy or lease a newly manufactured car, truck or van (14% now and in January) or buy a boat or recreational vehicle (6% now vs. 7% in January); and,

– One in ten Americans say they will start a new business in the next 6 months (10%) – a number which has held steady since September 2010.

So What?

The fact that Americans are no longer making drastic cuts in non-essential spending is a good indicator for the economy’s growth, yet Americans simultaneously do not appear to be increasing spending on large purchases. This may suggest that the economy is not yet turning around, or it may actually suggest that the economy is improving but that Americans are more cautious now, choosing to test the waters of this new fiscal environment, rather than diving in head-first.

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For more information at http://www.harrisinteractive.com>