Consumer confidence, bolstered by a positive outlook among young adults, surged to its highest level since November 2007 on Discover’s U.S. Spending Monitor.
The survey by the issuer of the Discover Card jumped 5.5 points to 91.5 (out of 100) in April. Overall, 34 percent, a new high, believe the U.S. economy is improving.
The monitor is based on a poll of 8,200 consumers that tracks consumer confident and “spending intentions” on a daily basis.
“Consumers, especially those below the age of 40, are feeling better about the economy and less pessimistic about their finances,” said Julie Loeger, senior vice president of brand and product management for Discover. “Hopefully, the growing economic and financial confidence of younger consumers continues, and ultimately helps improve the confidence among all Americans.”
Forty-five percent of younger consumers rated the economy as poor, a decrease of 13 points from the previous month. Older consumers who rated the economy as poor declined only three points.
Discover’s survey also found a continuing positive trend toward discretionary spending intent.
For the third straight month, the Monitor reported an increase in the number of consumers planning to spend more on discretionary purchases. An unchanged 57 percent of consumers are planning to keep overall spending about the same in the month ahead.
Overall, 11 percent of consumers said they would spend more on discretionary items, a double-digit percentage for only the third time in 12 months.
Consumers said they planned to increase spending in the following categories:
- Home remodeling or new appliances (increased from 14 percent to 18 percent)
- Vacations or furthering their education (increased from 12 percent to 16 percent)
- Sporting events, restaurants or hobbies (increased from 8 percent to 11 percent)
For more, see Discover’s U.S. Spending Monitor survey data
