In Times of Crisis, Home Is Where the Heart Is

Between October 19-21, 2001, Ipsos-Reid Express interviewed a representative sample of 1,000 US adults nationwide by telephone. The margin of error is +/- 3.1%. On questions that were asked of half the sample, the margin of error is +/- 4.5%. Consumers Trying to Remain Steady in Their Spending Overall, 70% of Americans plan to keep their spending constant over the next 6 months; greatly dwarfing the 11% of them who plan to spend less. Among those with changes in mind, Americans prove almost twice as likely to plan spending increases (19%) rather than cutbacks (11%) in the next 6 months. Of those Americans who are planning to spend less, more than three-quarters (78%) agreed that the general state of the economy has had at least some impact on their spending intentions. Meanwhile, 56% said it was the stock market's performance and 54% said that it was the prospect of unemployment. Americans Seek Stability, Had Enough Excitement for Right Now Financially, Americans say it is not a good time to change tactics or throw caution to the wind, but it is a good time to make major decisions and set broad strategic directions. Just 1 in 3 agree that, in light of the events of September 11, long-term investments are less of a priority than they usually are; almost no one (only 8%) says they are spending money like there is no tomorrow. A strong majority of 6 in 10 agree that [they are] making more important decisions about life than they usually do. Asked about the extent of their agreement with a series of attitudinal statements relating to the impact of September 11 on the way they live, nearly three-quarters agree that they are looking for stability more than excitement right now, and that staying home and being close to family appeals to them more than usual.

Signs of Bunkering Down When respondents were asked to comment on their spending plans for specific products and services over the next 6 months, a pattern and story emerged whereby Americans look poised to fortify their homes and personal lives with comfort. Of 10 items read to respondents, only 2 elicited significantly greater proportions planning to increase rather than decrease spending on them: home entertainment (like DVD players, large screen TVs, satellite TV, or digital cable upgrades) and home furnishings and decoration. By contrast, airline travel and leisure vacations are not high on Americans' spending priorities.

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