Consumer Car Buying Advice Blog

The latest analysis from consumer data analysis company Experian Marketing Services shows that American consumers began to lose confidence in the economy as early as Spring 2007.

Report based on a combination of factors

It may not be something most of us want to hear this close to all the holidays being celebrated at this time, but from a pure analytical point of view, the newest report from Experian is quite interesting.

According to the company, the analysis compared three factors: the self-reported economic confidence as well as the spending habits of Americans, the online site traffic and searches on “major purchase” items. By looking at these three indicators, Experian was able to show that consumer behaviors can be a “strong indicator” of a downtown that was to happen down the road.

Some major findings of the analysis:

•    Households earning $250,000 or more were the fastest to abandon the notion they would be somewhat or significantly better off in the coming year, dropping by 40 percent from Spring 2007 to Summer 2008

•    Middle- and upper-middle-income Americans (incomes ranging from $50,000 to $249,000) had the largest declines among those who planned to purchase big- or medium-ticket items within the next month, falling nearly 25 percent

•    From October 2006 to October 2008, overall visits to retail Web sites slowed, with a 4 percent year-over-year decline

•    During the same time period, overall visits to Web sites in the travel category were down 10 percent year-over-year

•    Online searches for major electronic items saw significant, year-over-year decreases, with “televisions” down 33 percent, “laptops” down 48 percent and “computers” down 57 percent

•    While online interest in big-ticket purchases decreased, visits to grocery Web sites are up 29 percent, and visits to coupon Web sites are up 27 percent

The Bottom Line

While this report, for many people, may be a case of “so tell me something I don’t know,” the study of consumer behavior on the web may very well lead to as sign, in the future, that the economy is finally on the way to recovery. Here at Auto Credit Express, we hope that it may also be a way of detecting a recession in its early stages, thus allowing businesses and governments the means to lessen the economic impact on consumers.

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