American's Plan on Staying Home

[dollardaze]

Due to the rising costs of almost everything in the country, more Americans plan on 'vacationing' at home than ever (at least since these figures have been first recorded).

Figures released this week show that the pessimism over the economy is at historic highs, plans for vacations and major purchases are at some of the lowest levels ever recorded.

Economic statistics have not fully reflected this trend, however. Either consumers are not as worried as they say, or the economic stimulus tax rebates sent out in the spring have made it easier to still buy things while coping with the high prices of gasoline and groceries.

The Conference Board has been asking if Americans think their own income will decrease or increase over the next six months. While most Americans expect no change, for the first time more people expect a decrease in income than those who expect their incomes to rise. This is the highest ever level of pessimism, and the lowest for optimism.

Another question the Conference Board asks is whether Americans feel that business conditions are likely to improve and if they feel that there will be an increase in jobs over the next 6 months. One third of the people feel that there will be fewer jobs, and that business conditions will worsen. Fewer than 10% expect improvements in either jobs, or business conditions.

As a result of this, the expectations index, which was at about 94% last year, is down to 41%, which is a record low. Consumers still give more positive answers than they did in mid-2003, as to how they see the present situation in the economy. Since the survey began in 1967, never have Americans been less confident about the future.

When asked about American's buying intentions, the figures for those intending to buy cars are at the lowest level ever. Fewer people intend to buy homes than at any time since 1982, when soaring interest rates had devestated the housing market.

Also in the survey, about 35% of the people responding said they plan to take a vacation in the following 6 months. About eighteen percent of these said they plan to drive rather than fly or take a ship. Both of the figures are at the lowest since the Conference Board began asking this question in 1978.