Retail spending intentions rebound in Retail Forward’s June survey
Consumers are upbeat about their spending in June, says the latest ShopperScape survey from consultants Retail Forward Inc. The Future Spending Index reached 101.3 in early June from 95.9 in May. Except for a 107.5 in April, the June number is at the top of the index range since September.
"At least in the near term, the pressures of elevated gasoline prices and rising interest rates won`t be enough to send shoppers scurrying for the exits," said Steve Spiwak, economist with Retail Forward. "Across income segments, this month`s results suggest that as long as jobs and incomes are growing, consumers will continue to find ways to adapt."
Overall, 62% of all shoppers are spending much or somewhat less due to the increase in gas prices. This compares to 67% in October 2005.
Optimism was up across all income segments.
• The index for middle market households (incomes between $22,500 and $75,000), which account for nearly half of overall spending, rose to 102.6 for June from 97.3 in May. Retail Forward said the main reason was that assessments of job security logged a strong rebound from May`s falloff. Also, consumer and mortgage debts have become easier to shoulder while home buying in this segment improved.
• Down Market households (incomes less than $22,500) posted the strongest improvement among the three income segments. The index for this group increased to 106.4 from 98.9 in May. As with Middle Market households, Down Market spending prospects are being buoyed by better job security, lighter debt burdens and a modest improvement in home buying.
• More optimistic views of job and income growth and debts along with an improvement in home buying bolstered the outlook for Up Market households (incomes greater than $75,000), whose index increased to 97.9 in June from 93.3 in May. The outlook was dampened somewhat by concerns about recent investment performance.
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