Americans’ Financial Outlook Driving “New Normal” Summer Spending Behavior, According to Research from Chase Card Services
- Study finds consumers maintaining cautious spending
behavior; more than half unlikely to vacation -
Jun. 15, 2011 (Business Wire) — Americans are approaching the summer travel season with cautionary spending behavior, according to a survey released today by Chase Card Services. The survey found that 41 percent of Americans are likely to take a vacation this summer, compared to a similar number last year of 44 percent last year. Within the majority of Americans unlikely to take a vacation, the research revealed that 39 percent are doing so in order to save money, with many others planning to take on additional cost saving measures, such as do-it-yourself projects, while enjoying the summer season.
Of those Americans who are planning to take summer vacations, many intend to do so close to home (58 percent) or stay with friends and family (51 percent) as money-saving-tactics. In addition, more than one third of Americans say they plan to spend less on typical summer activities, with 20 percent cutting back on dining out and 15 percent on entertainment like going to the movies.
“Research has shown that a ‘new normal’ is taking hold of American spending behavior and we are seeing this trend reflected in summertime activities,” said Tom O’Donnell, general manager, Chase Card Services, a division of JPMorgan Chase & Co. [NYSE: JPM]. “This summer, Americans are being more selective in their spending, adjusting their vacation plans, and embracing new types of activities to make the most of their finances.”
The Chase Summer Survey, fielded by GMRS, was a telephone poll of 1,001 U.S. adults age 18 and older across the country.
Americans Adopting More Moderate Spending Behavior; Wary of Rising Gas Prices
While consumers are taking greater strides to reduce their summer spending, the survey further revealed that many Americans already have adopted more moderate seasonal spending habits. For example, the majority of survey respondents reported that they personally maintain their yards and conduct home repairs instead of hiring external help, and more than a quarter have already cut back on summer-related purchases, such as grills and pool memberships, and have tried to reduce their summer utility bills.
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Question: Do you plan to cut back on spending this |
Yes, I’m planning to make that or |
I already do that… |
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summer with any of the following actions? |
similar change… |
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May 2011 vs. June 2010 |
May 2011 vs. June 2010 |
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| Maintain own yard (vs. hiring someone) | 12 percent (vs. 8 percent) | 64 percent (vs. 64 percent) | ||
| Cut back on novelty purchases like bbq grills or pool memberships | 30 percent (vs. 23 percent) | 26 percent (vs. 31 percent) | ||
| Do home repairs and spring cleaning on your own | 20 percent (vs. 14 percent) | 64 percent (vs. 66 percent) | ||
| Reducing summer utility spend like using less air conditioning | 29 percent (vs. 24 percent) | 30 percent (vs. 32 percent) | ||
| Biking or walking more to save on gas | 24 percent (vs. 15 percent) | 19 percent (vs. 22 percent) | ||
| Skipping a summer vacation or outing for a weekend or longer | 37 percent (vs. 24 percent) | 17 percent (vs. 24 percent) | ||
Similarly, many Americans are planning their summer vacations around expenses related to external factors like gasoline prices. According to the study, 25 percent of Americans are changing their travel plans due to the current cost of gasoline. However, spiking gas prices have been a concern for consumers since the beginning of the summer travel season: when asked what would have the biggest impact on their Memorial Day weekend plans, 48 percent of survey respondents stated gasoline prices. In addition, this concern over gasoline prices is likely to continue, as the survey found that 45 percent of Americans believe gas prices will be higher in six months.
Budget-Savvy Travelers
In addition to being more selective with their seasonal spending, Americans are being savvier in managing personal and external factors that affect their spending on summer vacations. For example, the survey found that for those Americans planning to take a vacation, 57 percent plan to or already have set a budget for the trip. Of those who set budgets, 24 percent plan to set smaller budgets than last year, while 19 percent stated they would set larger vacation budgets.
“Budgeting for expenses like vacations and building plans to stay within financial targets are positive practices that we’ve seen emerge since the economic downturn,” concluded O’Donnell. “These habits will continue to help Americans manage their personal finances as the economy and personal outlooks continue to improve.”
About the Chase Summer Research Study
To conduct the Chase Summer Survey, a telephone poll survey, a nationally representative, randomly selected sample of 1,001 adults aged 18 and older across the United States was interviewed by GMRS. For results based on the total sample of national adults, margin of sampling error is ±3 percentage points. Interviews were conducted with respondents on landline telephones and cellular phones. The data was weighted to ensure that the sample’s composition reflects that of the actual U.S. population according to U.S. Census figures.
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. Chase serves consumers and small businesses through 5,200 bank branches, 16,200 ATMs, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships and schools and universities. Chase also has issued more than 90 million credit cards. More information about Chase is available at www.chase.com.
Chase Card Services
Media contact:
Rob Tacey,
302-282-3014
Rob.Tacey@Chase.com
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