Despite signs that the economy is turning around, consumers are still acting cautiously. For example, almost two-thirds of U.S. adults (63%) say they have purchased more generic brands in the past six months to save money while an additional 12% say they have considered doing so.

These are some of the results of ‘”The Harris Poll” of 2,576 adults surveyed online between January 18 and 25, 2010 by Harris Interactive.

There are other things Americans are doing or have considered doing in the past six months to save some money:

• Almost half (45%) say they are brown bagging lunch instead of purchasing it, with 8% having considered doing so; 34% say this is not applicable to them;
• Two in five (39%) are going to the hairdresser/barber/stylist less often and 8% have considered doing so;
• One-third of Americans (34%) have switched to refillable water bottles instead of purchasing bottles of water while 10% have considered doing so;
• The media is also taking a hit as 33% of U.S. adults have cancelled one of more magazine subscriptions, one in five (19%) have cancelled a newspaper subscription and 22% have cancelled or cut back on cable television service with an additional one in five (20%) having considered doing so; and,
• One in five Americans say they have cut down on dry cleaning (22%) and stopped purchasing coffee in the morning (21%).

The only thing a majority of U.S. adults say they have neither done nor considered doing is changing or cancelling their cell phone service (52%), and only 15% have done so.

Generational differences in spending/saving

There are also some generational differences in what people are doing to save money. Gen Xers (those aged 34-45) are more likely to brown bag lunch (56%) and cut back on hair styling (43%). Matures (those aged 65 and older) are more likely to cancel a magazine subscription (45%). Echo Boomers (those aged 18-33) are more likely to cancel their landline service and only use their cell phone (20%) and to carpool or use mass transit (26%).

So what?

These may seem like small savings, but they are the things many financial planners say people need to do more of to save money. And, it seems in these times of greater economic hardship, Americans are finally heeding that advice. Are these cuts temporary or will they become lifestyle changes? Will people spend more on these items when the economy turns around? And when will that be?

“The Harris Poll,” conducted by Harris Interactive, February 16, 2010.  Website: www.harrisinteractive.com.

The National Retail Federation released its 2010 economic forecast recently, projecting retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 2.5% from 2009.  According to its bi-monthly Retail Sales Outlook, influential economic indicators such as the housing market and employment are beginning to show positive signs, which will bolster consumer confidence throughout the year. Total industry retail sales for 2009 declined 2.5%.

“As we continue to see signs of improvement throughout the U.S economy in 2010, overall sentiment will begin to lift, making way for slight increases in consumer spending,” said NRF Chief Economist Rosalind Wells. “While we still expect shoppers to continue to be frugal with their discretionary spending, retailers will soon be able to reap the benefits of leaner, smarter inventories and a year and a half of pent up consumer demand.”

Other positive economic contributions will come from trade, especially strong exports, a turnaround in the inventory cycle, and federal government spending. Consumer spending will lag behind overall economic growth, Wells estimates, but will continue to expand at a modest 2.0 – 2.5% rate.

“2010 Economic Forecast,” conducted by the National Retail Federation (NRF), January 26, 2010.  Website: www.nrf.com.

A recent survey of 12,500 couples conducted by the Knot Wedding Network found both conventional and not-so-traditional results when it looked at bridal gift registries. While traditional retailers remain the favorites, more registered couples are considering home improvement retailers for their registries.  In addition, the economy is also affecting more couples’ registry choices.

The top three favored retailers — Bed Bath & Beyond, Target and Macy’s — retained their dominant positions, with nearly 70% of couples creating their primary registries in these stories. But 3% of the future brides and grooms also registered with Lowe’s, and 2% registered with Home Depot.

Kitchen, bed and bath remain the most popular categories on a couple’s wedding registry, with kitchen appliances/electrics topping the list at 91%. Less traditional gift items like power tools (18%), outdoor gear (20%), lawn care/patio items (19%), and grilling/outdoor entertainment (39%) were also being registered for at a variety of stores, including Bed Bath & Beyond, Target, Wal-Mart, Sears and Amazon.com.

As expected, the Internet played an increasing role in registry setup and management, although in-store registry setup still dominated at 57%. The economy may have influenced the decisions of the engaged couples, all of whom had weddings scheduled for 2009. The survey saw a 50% increase in couples registering for honeymoon-related expenses, and more than four out of 10 couples claimed that the current stage of the economy affected their registry choices, meaning that they were considering their guests’ budgets.

Survey conducted by DRI on behalf of the Knot Wedding Network, parent company of TheKnot.com and WeddingChannel.com, as cited in a November 12, 2009 online report by Home Channel News.  Website: www.theknot.com.

A new Harris Poll finds that more than half of all adults are saving money by purchasing more generic brands, while over 40% are brown bagging more often and cutting back on visits to hairdressers and barbers. Over 30% have switched to tap water and canceled one or more magazine subscriptions. Smaller percentages, but many millions of people, have also cut down on dry cleaning, cut back or canceled cable television service, canceled a newspaper subscription, stopped buying their morning coffee, changed or canceled their cell phone service, increased their use of carpooling or mass transit and canceled their telephone landline service.

The survey also found that there are large differences by age. The proportions of different generations making these changes vary greatly.

The largest proportions of all adults making these changes to save money are:

• 64% who have been purchasing more generic brands
• 47% who are brown bagging lunch instead of buying it
• 43% who have been going to hairdressers or barbers less often
• 36% who have switched to tap water and refillable bottles instead of bottled water
• 34% who have canceled one or more magazine subscriptions

Smaller numbers, but numbers that represent many millions of people, have also:

• Cut back on dry cleaning (22%)
• Canceled or cut back their cable TV service (21%)
• Stopped buying coffee in the morning (20%)
• Changed or canceled their cell phone service (15%)
• Been carpooling or using mass transit (14%)
• Canceled their telephone landline service and are only using their cell phones (12%)

Analysis by age reveals some substantial differences between generations on some but not all of these actions. Echo boomers, aged 18 to 32, are more likely than Matures, aged 64+, to brown bag, to have canceled or cut back their cable TV services, to have canceled their landlines, and to carpool or use mass transit. They are much less likely than Matures to have canceled magazine subscriptions. Baby boomers are more likely than older and younger generations to be buying more generic products, to be brown bagging and to have cut back on their visits to hairdressers and barbers.

These reduced spending patterns reflect a big increase in savings, and economists have been telling us for years that we need to increase savings, notes the report. They also show that most people are taking prudent actions to protect themselves in bad economic times.

“Harris Poll,” conducted by Harris Interactive, as cited in a November 5, 2009 online report by MediaPost.  Website: www.harrisinteractive.com.