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Concern over the economy and anticipation of higher expenses brought the Discover U.S. Spending Monitor to its lowest level of the year in July. The Monitor, a 5-year-old daily poll tracking economic confidence and spending intentions of nearly 8,200 consumers throughout the month, declined 1.4 points to 89.3. The monitor last dropped below 90 in December 2011.
|Highlights of Discover U.S. Spending Monitor Results|
|Discover U.S. Spending Monitor Index||95.5||90.7||89.3|
|U.S. Economy Improving||33%||29%||28%|
|Personal Finances Improving||25%||23%||23%|
Economic Outlook Increasingly Pessimistic
The percentage of respondents reporting the U.S. economy as poor remained steady at 53 percent. However, consumers who expect the economy to get worse increased four percentage points from the prior month to 53 percent in June. This is the first time in 2012 that more than half of respondents felt this way.
Views on Personal Finances Remain Steady, Expectations Decline
Spending Intentions Increase Due to Rising Costs
While 28 percent of respondents plan to spend more next month (up two percentage points from June), this is primarily driven by an increase in non-discretionary items rather than a desire to spend more.
About Discover U.S. Spending Monitor
The Discover U.S. Spending MonitorSM is a monthly index of consumer spending intentions and capacity that is based on interviews with a random sample of 8,200 U.S. adults conducted at a rate of 275 per night. In addition to spending, the survey asks consumers their opinions on the U.S. economy and their personal finances. The Monitor began in May 2007 with a base index of 100. Surveys are conducted by Rasmussen Reports, an independent survey research firm (http://www.rasmussenreports.com).
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers home loans, private student loans, personal loans, online savings accounts, certificates of deposit and money market accounts through its direct banking business. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com.