The Great Recession — a term that is gaining more popular momentum — has had a meaningful shift on how consumers are spending money. A recent Harris Poll captures the consistency with which people are looking at their personal expenses and looking for ways to save some money.
Look at the trending pattern of what consumers have done in terms of money-saving actions from last June to this February. I suspect that as the economic slump has continued, more consumers have decided to act on things that they had been putting off.
Another interesting fact: 86% of consumers have a defined savings plan.
The net impact of decreased spending and sustained spending will be an increasing in de-leveraging velocity among consumers. In the long term, this is good for the economy.
