War, Gas Prices Shake Consumer Confidence

The unsettled situation of the war in Iraq and high gas prices at home have many consumers less than confident in the nation’s economy. This has led them to focus on buying needs over wants during the past month. These factors coupled with a shaky housing market led to lower than normal consumer confidence in the economy ratings, according to a report released by BIGresearch. The findings of the report are as follows.

• 43.9 percent of consumers are confident/very confident in chances for a strong economy, down almost a point from May (44.7 percent);

• 19.6 percent of consumers continue to worry about political and national security issues, up three points from May (16.6 percent) and almost half a point from June ’06 (19.2 percent)

The declining confidence has affected consumers’ spending psyche.

• 40.3 percent in June indicated that they’ve become more practical in their purchases, up from 36.7 percent last month and 39.9 percent in June ’06;

• Almost half (47 percent) are prioritizing spending based on needs, up from 44.8 percent in May, but below last June’s 49.8 percent.