Subprime mortgage crisis hurts spending
NEW YORK The subprime mortgage crisis is having a strong impact on consumer spending, according to a new survey by TNS.
TNS found that one-third of adults plan to reduce spending because of the effects of the subprime mortgage, citing major cutbacks in home improvement/major furniture purchases and technology purchases. Furthermore, the study found that seven out of 10 Americans blame subprime mortgage lenders for creating the crisis.
"While there certainly are other worries on consumers' minds, these results show the subprime mortgage crisis will impact spending habits," said Bob Neuhaus, evp of financial services of TNS North America. "Coupled with the fact many people blame lenders, it is an opportune time for financial institutions to recalibrate their brand image and client interactions by tailoring services to address their customers' financial anxieties."