After a slight uptick in January, the Discover U.S. Spending Monitor reached an all-time low in February, falling more than two points to 75.7. perhaps the January spike was a result of holiday hangover, and now we are back to our savings ways. While this obviously reflects limited confidence in the economic outlook, it is also a positive sign that we are spending less and concurrently, saving more than any time in the past couple of years.
“Until consumers can see some light at the end of the tunnel concerning the economy, I don’t expect their spending intentions to change much,” said Julie Loeger, senior vice president of brand and product management for Discover Financial Services. “The economy is giving them an incentive to save right now which unfortunately is coming at the expense of the nation’s retailers.”