| Apr 14, 2009 by Mark Maier The Latest On the Economy From Bigresearch....
Future Purchases
Perhaps it was the favorable reception the President and First Lady received across the pond, the DJI flirting with 8K, the slight uptick in the housing market for February, or just plain spring fever, but consumer confidence has risen in April 26.0% now indicate they are confident/very confident in chances for a strong economy, increasing from March's 19.5% and besting sentiment in April '08 (23.0%).
Increasing confidence seems to have buoyed consumers' willingness to spend over the next 90 days, according to the BIGresearch Diffusion Index (those who say they'll spend less subtracted from those who will spend more). With the exception of Electronics, all categories are up compared to March; however " with a nod to our troubled times " the 90 Day Outlook continues to decline from one year ago:
Retail Merchandise Categories - 90 Day Outlook
(Apr-09 compared to Mar-09 and Apr-08)
Rising confidence and tax [refund] season don't appear to have spurred planned spending on most high dollar durables, as six month purchase intentions are down from April '08 for several categories: computer, furniture, jewelry/watch, stereo equipment, and TV/appliances, home improvements, RV/boat, DVD/VCR, and digital camera are flat. A bright spot: 16.5% plan to spend on vacation travel, rising from 15.8% in March and from 15.9% one year ago.
One in ten consumers (10.4%) plans to purchase an auto in the next six months, up almost a point from March (9.5%) and the highest reading since April '08 (10.9%). With gas prices tempering in the $2/gal range, are consumers re-thinking the type of auto they'd like to take for a spin? One year ago, cars were being considered by majority (62.7%) ahead of less gas-friendly trucks and SUVs'however, this month it appears the highway heavyweights are making a comeback:
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