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Consumers are putting the brakes on post-holiday spending as confidence sinks lower, suggests a new report Discover Financial Services released today. The Riverwoods, Ill.-based company's monthly U.S. Spending Monitor fell in December for the fourth consecutive month, declining more than three points to 76.6, a new low. The index was pegged at 100 when Discover introduced it in May 2007. A record high 65% of those polled rated the economy as poor, and 70% said things were getting worse. Some 34% of those surveyed said they plan to spend less in January compared with 24% who said they planned to do so after the holidays last year. Fifty-five percent of those polled said they will trim discretionary and home-improvement expenses, and 52% are holding off on major personal purchases. The only discretionary category that saw a planned increase in spending was savings and investing, where 12% said they planned to save more, up 200 basis points from last month. Some 51% of those polled said they expect to have money left over after paying their bills for December, up 200 basis points from a year ago. Rasmussen Reports conducts the survey, which is based on a random sample of 15,000 U.S. adults interviewed by telephone each evening throughout the month.
