California consumers still reluctant to spend
October 26, 2010
A new survey by Citibank California indicates many state residents have permanently altered their saving and spending behavior, despite feeling better about the economy’s prospects. [LA Times]
Roughly 60 percent of the respondents said they had cut back on credit card purchases, discretionary spending, and holiday travel plans, according to the report released Tuesday.
The top two ways Californians have curbed spending are to splurge less in restaurants (71 percent) and on clothes (69 percent). Survey respondents said they were also going to the movies less, buying fewer name-brand items and deferring home improvements.
However, consumers have shown reluctance to cut back on cellphone and Internet use, said Rebecca Macieira-Kaufmann, president of Citibank California.
“People seem to be prioritizing social networking over spending money on food or clothes,” Macieira-Kaufmann said.
The new survey also found that 63 percent of consumers were reducing credit card purchases, 55 percent were working to lower debt, and 54 percent were postponing a major purchase.