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BizReport : Ecommerce : March 10, 2009

ChangeWave: Downward trend in consumer spending continues

The latest ChangeWave survey indicates the worst spending outlook in the history of the firm's tracking, forecasting a grim outlook for the foreseeable future in the U.S.

by Helen Leggatt

While ChangeWave's January consumer survey showed a tantalizing leveling off in spending decline, February's results confirm that we're far from out of the woods.

Over 60% of the 2,701 U.S. respondents said they will spend less in the next three months, 4% down on January's survey. Thus, after 13 months of recession, U.S. consumer spending is still trending downwards.

The same goes for consumer sentiment and expectations which have turned significantly more negative. Whereas just over half of those surveyed in January believed the U.S. economy would worsen over the next 90 days, February's data showed an increase in negativity to 64% of respondents.

"Our February survey results show an overall spending environment that remains fiercely negative, even as the tiny signs of stabilization we saw last month proved short lived," writes Paul Carton on the ChangeWave blog.

"Economically speaking, the honeymoon period for the new U.S. Administration and President appears over."

Tags: ChangeWave, consumer spending, U.S. economy

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