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Consumer optimism rose in August as confidence in the economy grew, but spending is still on hold, according to survey data Discover Financial Services released this week. The Riverwoods, Ill.-based company's U.S. Spending Monitor rose to 87 from 83.5 in July. Discover set the index at 100 when it introduced it in May 2007. Some 31% of consumers surveyed in August said they felt economic conditions were improving, while some 21% said they felt an improvement in their personal finances, the highest percentage since August 2008. For the third consecutive month, more than half of respondents said they plan to cut discretionary spending in the month ahead. Some 52% of consumers surveyed said they will spend less on dinner, movies or sporting events, while 48% said they plan to cut major personal purchases, such as vacations, from their budgets. Some 58% of respondents said they plan to save or invest the same or more in the month ahead. Julie Loeger, Discover senior vice president of brand and product development, said despite consumers' rising optimism, "improved economic and financial attitudes have not translated into increased consumer spending, a cause for concern for retailers counting on revenue from back-to-school shopping and as the holiday shopping season approaches."
