“One year after the collapse of the financial markets, the American Express Spending & Saving Tracker shows that there has been a shift in how consumers are expressing their wants and needs,” said Pamela Codispoti, American Express senior vice president and general manager, cardmember services.

Wondering whether this is this good or bad news for retailers? Read on. A research sample of 2,032 adults in the general US population, as well as two sub-groups—the affluent and young professionals—expressed opinions that support Codispoti’s claim. Perhaps this year’s holiday shopping estimates need to be rethought to match the values of the world’s “new” consumer. 

According to respondents’ feedback, 60% said they intend to spend the same amount or more in the next 30 days, with 40% saying they plan to spend less. In addition:

• Young professionals were more optimistic about the economy and more likely to increase spending in the next 30 days (24% versus 14% of the affluent and 10% of the general population)
• 65% of young professionals planning to spend more said they would spend on clothing, 54% said on dining out, and 53% said on travel
• 49% of consumers in the general population who expect to spend more said they plan to increase spending on groceries and clothes

The results from the tracker also showed the full impact of changing consumer habits by highlighting the fact consumers’ spending habits are being determined by what they consider wants versus needs. For example, while car maintenance jumped in priority by 37%, only 7% named vacations as high priority verses 25% last year.

Said Codispoti: “We may now be at a point when many consumers have taken stock of their financial situation and have a better handle on what their spending and saving plans are in the current economy. I don’t think anyone expects the American consumer to quickly return to the spending levels of the last few years, but amid their cautiousness we are seeing some areas where people are willing to increase spending.”