Consumers Pulling Back

The percentage of consumers who feel we are in tough times or a recession has increased since April, according to a monthly survey by The NPD Group, Inc.

In May, 58 percent of consumers said we are in a recession, compared to 55 percent in April.

What’s more, consumers are not only less optimistic about the economy, they are beginning to change their behavior in response.

How are consumers reacting? The survey respondents said they are planning to spend less on things like apparel and footwear. And with vacation season approaching, 49 percent of consumers said they plan to cut back on leisure travel.

“Consumers are finally starting to react to the price of gas and other rising costs and are shifting shopping intentions,” says NPD chief industry expert Marshal Cohen.