Discover U.S. Spending Monitor shows pessimism of US consumers about economy

The Discover U.S. Spending Monitor decreased for the second consecutive month from 85.6 to 83.5 (based out of 100), the current state of economy and personal finances are seen in dark colors by the consumers. In total 61% rated current economic conditions as poor, a 2-point increase from the previous month.

Meantime, just 32% of consumers rate their finances as good or excellent, a Monitor low and a 1-point drop from last month. 25% currently rate their finances as poor, tying a Monitor high.

Besides, the Monitor also shows that the number of consumers expecting to spend more in the coming month dropped to 21% in July which is a -point decrease from June and the first drop since February. On the other hand, the number of consumers expecting to spend more on household expenses like gas and groceries dropped by 6%.

“Despite some positive signs in the economy, consumers are showing no intentions of increasing their spending,” said Julie Loeger, senior vice president of brand and product management for Discover. “With a Monitor-low 32 percent feeling their personal finances are good or excellent, it is no surprise that consumers are continuing to cut back.” 

“The optimism consumers showed about the economy during the spring has faded during the summer,” said Loeger. “Unemployment is still rising and while some are saying the worst is over, the majority of consumers surveyed by the Monitor in July currently don’t feel that way. Until they do, consumers are unlikely to start spending again.”