Wednesday, May 14, 2008

Declining Teen Discretionary Spending

Economic sluggishness now is hitting teenager discretionary spending. Total teen spending on fashion declined nearly 20 percent on a year-to-year basis, indicating a "discretionary recession," says Piper Jaffray senior research analyst Jeff Klinefelter.

The survey results, from mall research and classroom visits across the United States, as well as 4,500 online survey responses, shows that total spending trends were weakest for young men with a 15 percent year-over-year decline versus an 11 percent year-over-year decline for young women.

While the fashion category represents 41 percent of the total teen budget in the survey, the retail research team notes this allocation is low compared with the past several years.

Klinefelter says "the current economic challenges are impacting consumers at all income levels and ages, indicated by the low level of average planned spending in the fashion category this spring."

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