NPD: Consumers still pessimistic on economy

PORT WASHINGTON, N.Y. The percentage of consumers who believe the economy is in a downturn increased again last month, according to The NPD Group's Consumer Spending Indicator study, with 91% of respondents saying they felt the economy was either in or headed for a recession in November.

The study found that despite major sales pushes by retailers, this has had little affect on consumer spending. According to the survey, 35% said that sales or coupons would make no difference in their shopping habits in the coming months.

“Those huge sales that were designed to lure the customer in really don’t seem to have had much of an impact. They aren’t bringing the consumer’s back in to shop,” said Marshal Cohen, chief industry analyst for The NPD Group. 

The same categories that were the least vulnerable in last month’s study remain so in the current month’s study with one slight change. Video games and toys remain steady while beauty is being edged out of the No. 3 spot.

Video games take the top spot as the least likely to see cut backs in consumer spending with 32%, followed by toys at 36%. This month, however, movies took the number three spot at 39%. Beauty slipped to forth this month at 41%. “But beauty is still showing that women remain loyal to their regimen even in tough times,” noted Cohen.