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Consumer spending remained flat in September despite a more favorable opinion of the economy, according to recently released survey data from Discover Financial Services.
The Riverwoods, Ill.-based company's U.S. Spending Monitor rose to 89 from 87 in August. Discover set the index at 100 when it introduced it in May 2007.
"Consumers definitely feel economic conditions are getting better, but over half still rate current economic conditions as poor," Julie Loeger, Discover senior vice president of brand and product development, said of the survey results.
"Combine that with uncertainty as to where their personal finances are headed and you can see why consumers are still very cautious with their spending intentions," Loeger said. "Unfortunately, the Monitor is showing no signs that consumer attitudes may change as we head into the holiday shopping season."
One-third of consumers surveyed in September said they felt economic conditions were improving, compared with 31% who said so the previous month. A year ago, 12% of respondents said they felt the economy was improving. Some 33% of respondents rated their finances as "good" or "excellent," the highest in four months and up a percentage point from August.
On a more discouraging note, for the sixth consecutive month less than half of consumers expected to have money left over after paying monthly bills. Some 47% of consumers surveyed expected to have money left over, a percentage point higher than in August.
Nearly one in five survey respondents, or 19%, expected to spend more in the next 30 days, according to the survey, which continues a four-month decline and down a percentage point from August. Fifty-four percent said they planned on spending the same amount, up 2 percentage points from the previous month.
"After months of cutbacks, consumer spending intentions appear to be leveling off, a sign that they are content with the spending cutbacks they made," Loeger said. "A cause for concern is there appears to be no indication consumers are willing to increase their spending, despite a Monitor-high number of them who feel the economy is getting better."
