Nearly one in five US households makes big spending cuts
Friday, 17 October 2008
LOS ANGELES, Oct. 16 (Xinhua): Because of the deepening financial crisis, nearly one in five U.S. households has made steep spending cuts already, according to a report published Tuesday.
The study also shows that two other broad groups of consumers are either holding steady or looking for reasons to spend.
The study, by Acxiom, a data collection company in Little Rock, Ark., breaks 120 million U.S. households into three broad groups in terms of spending psychology.
It estimates that 19 per cent of households are "digging in" by dramatically tightening their belts, while 48 per cent are maintaining the status quo on spending. The remaining third, called "potential rebounders," have made the least efforts to control their urge to splurge.
"That 19 per cent are pretty hard core, and they're pressed," said Mike Gold, a retail analyst with Acxiom. "But it does leave a little more than 80 per cent of consumers who are hanging in there. "
The study also shows that two other broad groups of consumers are either holding steady or looking for reasons to spend.
The study, by Acxiom, a data collection company in Little Rock, Ark., breaks 120 million U.S. households into three broad groups in terms of spending psychology.
It estimates that 19 per cent of households are "digging in" by dramatically tightening their belts, while 48 per cent are maintaining the status quo on spending. The remaining third, called "potential rebounders," have made the least efforts to control their urge to splurge.
"That 19 per cent are pretty hard core, and they're pressed," said Mike Gold, a retail analyst with Acxiom. "But it does leave a little more than 80 per cent of consumers who are hanging in there. "