Perhaps by necessity, perhaps by desire, but most likely by both, An increasing percentage of Americans say they more enjoy saving than spending.



The recession and financial crisis have resulted in a significant change in the way many Americans feel about spending and saving. Six in 10 Americans (62%) now say they more enjoy saving than spending -- while 35% say the reverse. This reflects a shift that began in December 2008 and a marked change from the first half of the decade, when Americans were about evenly split regarding whether they more enjoyed spending or saving.







Demographics







Changing Consumer Psychology



Essential to the "go forward" economic outlook is whether consumer spending will return to pre-recession levels or reflect a "new normal" spending pattern. The significant shift to saving in American preferences, as opposed to spending, suggests an important change in consumer psychology. Most likely, this change in consumer preferences results from the severity of the recession, the financial crisis, many Americans' severe loss of wealth in their homes and investments, and the significant change in the availability of credit throughout the economy.



At the same time, many consumers also say their spending behavior has changed. More than half of the nation's consumers across socioeconomic groups say they are continuing to spend less, despite the claims of many economic observers that things are getting better and recovery is underway. Two-thirds of consumers who are spending less -- and 38% of all Americans -- say their current reduced level of spending is their new, normal spending pattern. And significant percentages of Americans across all major demographic groups say this is their new normal.



Further, Gallup's continuous tracking of consumer spending behavior in early 2010 shows that consumers are actually doing as they say by spending at a new-normal level -- consistent with their 2009 spending, and much lower than their spending at the beginning of the recession in 2008.

Peak Boomer Spending Is In Rear View Mirror

Birds Return To The Nest

I'm Sure Glad The Recession Ended

State Income Tax Receipts







State Income Tax Receipts Percent Change From Year Ago







If you believe retail sales are going up because of government reports on Advance Sales, then please think again.



You owe it to yourself to read Retail Sales Rise: Where? Let's Take a Look; Expect Nothing Less Than Panic.



After you click on and read the above link, take a good hard look at that last chart and ponder the implications in regards to union salaries, school budgets, pension promises, medical benefits, etc.



Next think about what the massive wave of boomer retirements might do to boomer spending habits and future tax revenue.



Next think about the implications on consumer spending habits were tax hikes attempted to cover any shortfalls.



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