The Discover U.S. Spending Monitor tumbled six points in October to the lowest level (80.4) since its inception, as a result of the deepening consumer pessimism regarding worldwide financial and credit markets. More than 66 percent of participants noted that they planned to cut back on their spending this holiday shopping season.
And even with the recent retractment in fuel prices, there are no signs that consumers are willing to take their gas savings and apply it elsewhere. In fact, of the 11% who said they did increase spending, 57% bought more gas and food, 14.3% said they would indulge in entertainment and only 9.1% said they would put the money in savings.