Consumers Reduce Discretionary Spending

Columbus, Ohio A survey released Thursday has found that consumers are continuing to feel the pinch of the struggling economy, and that they will cut spending to compensate.

According to the latest American Pulse Survey of 4,055 respondents, 61.7% are dining out less, 57.3% are driving less, 47.4% are attending fewer movies, 46.1% are forgoing department stores for discount retailers and 45.3% are cutting back on their vacation budgets to cope with the current economic environment.

The survey found that consumer budgets are most impacted by gas prices (67.9%), groceries (47.2%), home heating and cooling (46.8%) and taxes (36.1%).

Price haggling is one way consumers are coping with rising prices. According to the survey, half of Americans (50.3%) report having negotiated for better prices on products other than a home or vehicle in light of the current economic situation.