Indicators Point to Rising Consumer Confidence Ahead

Washington, DC - A new Ipsos-Reid/Consumer Economics poll suggests that American consumers believe we are ready to turn the corner on the economy. The first Ipsos-Reid survey of the American public in 2002 indicates that consumers remain skittish about the economy, and in particular, job security and their own financial situation, but also strongly reflects that better times lie ahead.

Results are based on a survey with a representative sample of 1,000 adults nationwide conducted January 4-6. The margin of error is +/- 3.1%.

Currently, 18% of those surveyed describe their local economic conditions as strong, but 42% expect the economy in their local area to be stronger six months from now. Similarly, 28% of respondents describe their personal financial situation today as strong whereas 46% say when looking six months ahead, they expect their personal financial situation to be stronger six months from now.

Americans remain concerned about job security for themselves, their family and other people. 47% say they are less confident now than they were six months ago and only 35% say they are more confident about job security. Moreover, 44% of Americans say they or someone they know well lost their job in the last six months as a result of economic conditions. Yet, when asked to look ahead at the next six months, only 22% of those surveyed believe that economic conditions will very likely cause them or someone they know well to lose their job, although a total of 52% are at least somewhat likely.

Other findings:

• Consumers remain cautious about purchasing. Nearly half of all consumers (48%), say they are less comfortable making a major purchase (such as a car or house) than they were six months ago and about 1-in-3 (31%) say they are more comfortable.
• A similar pattern is evident when consumers are asked about making other purchases. 41% say they are less comfortable now making other household purchases, whereas 36% say they are now more comfortable than they were six months ago.
• Finally, consumer confidence is divided on being able to invest in the future, some 40% now say they are more confident than they were six months ago in their ability to save money for their retirement or their children's education, while an equal percentage (41%) say they are less confident.

The survey was conducted by Ipsos-Reid US Public Affairs, the Washington, D.C.-based division of Ipsos-Reid, which is part of the world's fourth largest polling and market research organization, the Ipsos group, based in Paris. Ipsos-Reid US Public Affairs is a non-partisan, objective public affairs research organization made up of Democratic and Republican campaign and political polling veterans. It was established in Washington in August 2001, and it is led by Thomas Riehle, who has more than 15 years of experience as a political pollster in Washington. The Ipsos group worldwide earned revenues in excess of $329 million in 2000 and an estimated $450 million in 2001. The Ipsos-Reid/ Consumer Economics National poll is conducted the first and third week of every month, as part of Ipsos-Reid's weekly omnibus polling service.

To view the complete media release and tables, please download the PDF file.

• Contact: Thomas Riehle, President Ipsos-Reid U.S. Public Affairs Telephone 202.463.7300 Cell 202.494.8595 [email protected]