Consumers are delaying big purchases -- big time.
A ChangeWave consumer spending survey reveals a massive breakdown in the willingness of consumers to buy big-ticket items.
In the survey of 2,763 U.S. consumers, completed Nov. 3, 21% of respondents said they have delayed or canceled a major planned purchase in the past 90 days.
What are the top big ticket items consumers have put on hold?
Here's the not-so-fab five:
It's no surprise that autos top the list.
As one respondent said, "Both of my cars have 80K miles. Usually I would be replacing one of them, but I'm delaying that decision due to the state of the economy."
Home improvements and furnishings came in a close second.
One respondent reported he's delaying renovation plans until next year when "material and labor costs should drop due to the ongoing recession." Another said his family won't be proceeding with a kitchen remodeling project because they "don't want to borrow money right now."
Rounding out the list of consumer cutbacks are TV/electronics purchases, usually a staple for the holidays, along with travel and the biggest-ticket item of all -- purchasing a new home.
Why are consumers zipping their purses?
Here's a clue: When we asked how satisfied they were with the current state of their personal finances, only 4% of respondents said they were very satisfied. That's down from 20% a year ago.
So, until their personal finances improve, consumers are likely to keep a stranglehold on big-ticket spending.
As one respondent put it, "Any non-necessities are being put on hold!"
Paul Carton is the Director of Research for the ChangeWave Alliance Research Network. The Network is a group of 20,000 highly qualified business, technology and medical professionals -- as well as early adopter consumers -- who work in leading companies of select industries.
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Reader Comments (Page 1 of 1)
11-28-2008 @ 3:22AM
lou said...
My washer finally broke down for good. I won't buy another for a while. I go to the Laundromat to wash my clothes and then bring them back home to dry. I could probably afford one if I robbed Peter to pay Paul, but since I don't know of one that is totally made in America (Not just a few parts, or assembled here) I can wait. I would love to help the American worker, but I am not going to pinch pennies for foreigners.
11-28-2008 @ 11:24PM
Joel Smith said...
The 5 big things unfortunately have been fueling our economy.
With the recent terrorist strike in India, Travel and tourism worldwide will probably take another hit.
It's going to be an interesting Christmas.
Joel Smith
Lake Chapala, Mexico
http://www.casapreciosaajijic.com