2011 Wrap-up + New Holiday Insights

For the final BIG Call of 2011, we presented new Holiday Insights (as reported here by the National Retail Federation) as well as 13 month snapshots for Consumer Confidence, Employment Outlook, Practical Purchasing, and Personal Finances.

Key Takeaways:

Consumer Confidence: It’s been a bumpy ride this year, but consumers are closing out 2011 with nearly the same perspective on confidence in a strong economy as they did 365 days ago. There’s still a long way to go, though, before consumers begin to have warm and fuzzy feelings about the economy again.

Employment: Although the official U.S. unemployment rate reached a two year low in November, consumers have a nearly identical outlook for the job market now as they did at the end of 2010. Concern for the job market is still very real, which will play into the decisions consumers make in 2012 regarding their debt, savings, and spending as well as who they plan to vote for in the upcoming Presidential election.

Practicality: While consumers feel roughly the same way that they did headed into 2011, times over the past 13 months have been tougher, yet they’ve been better, too. Cautious spending will likely stick around in the New Year.

Personal Finances: Paying down debt and decreasing overall spending remain the top financial goals, but the importance of increasing savings is growing as we close 2011. It looks like consumers will begin 2012 with a more fiscally conservative mindset than they did for the start of 2011.

Holiday: Fewer consumers have completed holiday shoppers compared to this time last year. As of the first week of December, one in three shoppers either hadn’t started yet or has completed less than 10% of their purchases. Since displacing credit cards in 2005, debit cards continue as the most popular payment method for the holiday season. It appears that consumers do seem to be continuing to make a conscious effort to stay off the credit cards and stay on budget.

To listen to the recorded webinar, click here.

© 2011, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

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