Consumers to cut spending the most on dining out
November 12, 2008
by Bryan Salvage
PORT WASHINGTON, N.Y. — Consumers said in October they were most likely to cut back on dining out (with 57% saying they planned to spend less), followed by apparel at 54% and entertainment at 50%. The least likely areas of the market to be affected will be video games at 35%, toys at 39%, movies at 43%, beauty at 44%, and music, 44%. So indicates The NPD Group’s results of its latest Consumer Spending Indicator study (formerly Consumers Speak Out on the U.S. Economy), now in its seventh month.
The Consumer Spending Indicator report is a study designed to find out where consumers say they are most and least likely to cut back their spending.
"Consumers are looking to spend less in the places they are able to find alternatives or ‘go without’ for now," said Marshal Cohen, chief industry analyst of The NPD Group Inc. "Things like eating out less or at less expensive restaurants or going another season with the coat or sweater you bought last year are examples of where consumer behavior is changing."
While consumers may intend to change how they shop, for now they are not changing where they shop. Forty-five per cent of those surveyed said that current economic conditions will have no impact on where they will shop, compared to 44% in April.