AP/Ipsos CASH Index (Consumer Attitudes and Spending by Household)

Washington, DC -- The Associated Press/Ipsos-Public Affairs CASH Index measuring consumer attitudes rose slightly in December to 93.9, from 89.8 in the post-election November poll. This is the third year in which there has been a rise in confidence at year's end, although this year's increase is somewhat smaller than that seen in 2003 (+6.3 points) and 2002 (+4.6 points). Big Rise In Investment Confidence, Evaluation Of Local Economy Three of the four CASH subindices rose this month. The greatest increase is in the Investment Index, which tracks consumers' confidence in their ability to save for the future after making purchases for the home. The Investment Index current stands at 99.2, up nearly nine points from November (90.4) and nearly back to the level seen in September (101.5). At 102.7, the CASH subindex on Current Conditions has risen over five points from last month (97.4). The most buoyant components of the CASH index this month are those related to consumption. Compared to a month ago, a greater number of Americans feel more comfortable about making either major purchases like a home or car (37%, up from 32% in November) or other purchases for the home (43%, from 38%) than they did six months ago. Purchasing confidence was depressed last month in the wake of the election but is now more in line with past trends - although a plurality remains "less comfortable" making major purchases now compared to six months ago. While Americans feel freer to spend, confidence in their ability to save remains steady. Nearly half (45%) say they feel more confident now than six months ago in their ability to invest in the future. However, nearly as many say they feel "less confident" about their ability to save and invest, and this group is slightly larger now than it was a year ago. Expectations And Job Situation Hold Steady The Expectations subindex has risen just over half a point from last month (70.5 now, 69 in November), reflecting largely unchanged expectations regarding where they think the local economy, personal finances, and the job market will be six months from now. In respect to the Jobs Index, the overall score remains on level with November (111.1 from 111). Within the Index's components, respondents are divided between those who have more (43%) and those who have less (42%) confidence in job security now than they did six months ago. Similarly, there has been no real shift in reported experience of job loss, and half (50%) say it's unlikely they or someone close to them will be affected by unemployment in the next six months. Methodology The Associated Press Poll is conducted by Ipsos-Public Affairs. Between December 6-8, 2004, the AP-Ipsos poll interviewed a representative sample of 1,000 adults nationwide. The margin of error is +/- 3.1 for all adults. Margin of error for subgroups may be higher. The AP/Ipsos CASH Index is designed to provide a single, handy number that summarizes movement across an array of consumer attitudes, including current assessments and near-term expectations about the economy and personal finances, job security, confidence in the ability to save and invest for the future, and comfort level with making major purchases and other household purchases.

Ipsos CASH Index Surveys of consumers are conducted by Ipsos Public Affairs, the Washington, D.C.-based division of Ipsos, a leading global survey-based market research group. The Ipsos Consumer Attitudes and Spending by Household (CASH) Index polls are conducted the first and third week of every month, as part of Ipsos-Public Affairs weekly omnibus polling service. The Ipsos CASH Index, started in January 2002, is a bimonthly national survey of consumer attitudes on the current and future state of the local economy, personal financial situation and spending, saving and confidence to invest.

For more information about the Ipsos CASH Index or to receive this report on the first and third week of every month, please e-mail [email protected], or contact Brian Scanlon at 202.463.2146. For more information on this press release, please contact: Janice Bell Director, Ipsos Public Affairs Washington, D.C. 202.463.7300

About Ipsos Public Affairs Ipsos Public Affairs, headquartered in Washington D.C., is a non-partisan, objective, survey-based research company made up of campaign and political polling veterans as well as seasoned research professionals. The company conducts strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research but often elite stakeholder, corporate, and media opinion research. It has offices in New York City, Chicago, San Ramon (CA), and Washington, with affiliates around the world. Ipsos Public Affairs conducts national and international public opinion polling on behalf of The Associated Press, the world's oldest and largest news organization, and conducts the young voters poll for Newsweek.com. Ipsos Public Affairs is an Ipsos company, a leading global survey-based market research group.

To learn more, visit: www.ipsos-na.com/news/pa

About Ipsos Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and reactions of consumers, customers, and citizens around the world. Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting and modeling and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2003, Ipsos generated global revenues of $644.2 million U.S. To learn more, visit: www.ipsos.com Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP