Optimism Wanes After War In Iraq; Ipsos CASH Index Returns To Downward Trend Of Pre-War Period

Interviews for the latest polling were conducted between May 6 to 8 and May 20 to 22, 2003. The margin of error for the questions on each rolling average of two consecutive surveys totaling 2000 adults is +/-2.2%, nineteen times out of twenty. Washington, D.C. -- Consumer optimism in the post-Iraq war period is showing signs of weakness as the Ipsos National CASH Index (measuring Consumer Attitudes and Spending by Household) dropped another 6.7 points, as both CASH Index readings in May showed declines. The CASH Index now stands at 79.9. The current CASH Index halts a two-month rise during March and April, 2003, when the Ipsos National CASH Index rose more than 27 points. Declines during the entire month of May signal a reversal of the trend in consumer optimism. The Ipsos National CASH Index declined a total of 8.9 points in May, nearly a third of the gains from March and April. Click Here To View Chart The recent declines in the CASH Index are due to downturns in the consumer attitudes regarding the state of the local economy in the near future and current personal finances. Currently, local economic expectations stand at -8.4 (down 3.3 points since early May, 2003) and is the largest negative contributor to the Ipsos National CASH Index. Current personal finances stand at -6.1 (down 2.2 points since early May, 2003) and is the second largest contributor to the most recent declines. Economic Attitudes Tied to Confidence in the Country Consumer confidence in the area of economic expectations is clearly related to overall feelings about the direction of the country. Respondents who believe the country is headed in the right direction are significantly more optimistic about the future of their local economy. How the Ipsos CASH Index Scores Changed since January 2002 The following chart depicts the net change in the most recent monthly CASH Index rating since January 2002 based on each of the factors used to generate the Index.

Ipsos CASH Index (Ipsos Consumer Attitudes and Spending by Household Index) Index Score Changes Since January 2002 - National Monthly -

Click Here To View Chart Ipsos CASH Index Surveys of consumers are conducted by Ipsos-Public Affairs, the Washington, D.C.-based division of Ipsos, which is the world's second largest polling and market research organization. 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 Ursula Davis at 202-463-7300. For more information on this release, please contact: Thomas Riehle President, Ipsos-Public Affairs Washington, D.C. 202.463.7300