eBillme survey: 50% consumers reveal confidence in economy

According to the eBillme(TM) Online Spending Index, a quarterly inquiry examining consumer’s spending trends online, 50 percent of consumers reported they will have more confidence in the economy while more than 1 in 4 feel more comfortable increasing their everyday spending now that the new administration has come. This quarter’s Index shows cautious optimism in the conditions of still existing uncertainty about economic conditions

The eBillme Online Spending Index surveyed 1,600 consumers to measure online spending planned for the quarter and the influencing factors including the economy, security, and financial control. This quarter, the Index also surveyed consumers about projected Valentine’s Day spending in addition to the impact of the Obama administration on spending and consumer confidence and to learn what type of holiday retailers can expect this year. It was found out that 11 percent of consumers are planning to spend more this Valentine’s Day compared to the last and 18 percent of consumers are planning to make their Valentine’s Day purchases online this year.

Over the next 90 days online spending are projected to decrease to an average of $75 as compared to $175 during Q4. It is not surprising as Q1 is historically a low quarter in sales for retailers coming out of the holiday shopping season. As usual consumers pay bills and lower any debt they acquired through Q4, Further data shows that 55 percent of consumers reported the delay of major purchases due to uncertainty in the economy compared to 48 percent over the last 2 quarters. 

Q4 and Index data shows that consumers are taking steps to spend with caution, says Marwan Forzley, President and CEO of eBillme, “While the online retail sector has been able to better withstand the effects of the economy, we are heading into a cycle where shopping responsibly will be on the mind of every consumer”
The next Index will be released in April, 2009. 

Source: eBillme