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MTSU survey: Midstate consumers ‘increasingly upbeat’

April 26, 2013 By

Following a confidence dip at the end of last year, Midstate consumers have become even more optimistic about the future of the economy as we head deeper into 2013.

The overall consumer outlook index rose to 193 in April, up from 144 in February, according to the Middle Tennessee Consumer Outlook Index released this week by MTSU’s Office of Consumer Research. That compares to an index of 106 in November 2012.

“Although local consumers remain somewhat cautious about the overall U.S. economy, they have become increasingly upbeat about the future of the local economy, the current and future job market in Middle Tennessee, expectations for their personal financial situation, and their perceptions that now is a good time to make large purchases,” stated Tim Graeff, director of MTSU’s Office of Consumer Research.

The current poll of 355 randomly selected residents of Davidson, Rutherford and Williamson counties was conducted April 16-18. The index is computed by adding the percentage of favorable responses to each of a series of questions and subtracting the percentage of negative responses.

Local consumers are becoming more optimistic that the economy will continue to rebound and grow. And when asked whether or not they would increase or decrease spending compared to last year, the percent of consumers who expect to increase spending rose significantly.

“This optimistic outlook and increased expectations for spending are welcome news to local businesses and retailers,” Graeff said.

Consumers still worry about the possibility of higher taxes, which would reduce the amount of money for discretionary spending.

You can read the full report here.

— Jimmy Hart (jimmy.hart@mtsu.edu)

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Midstate consumers more upbeat about economy, but …

February 4, 2013 By

Local consumers have become more optimistic about the future of the U.S. economy, according to a new three-county survey by Middle Tennessee State University.

The Office of Consumer Research at MTSU reported that after a decline in their outlook at the end of 2012, the overall consumer outlook index rose to 144 from 106 in November. The current poll of 334 randomly selected adult residents of Davidson, Rutherford and Williamson counties was conducted by phone on the evenings of Jan. 29-31.

Tim Graeff, director of the Office of Consumer Research, said the more positive perspective from consumers was fueled by increasingly more positive views of the current economy, greater expectations for the future of the economy and a growing sense that now is a good time to make large purchases.

He noted, however, that a concern among retailers and businesses is whether or not this more positive outlook on the economy will lead to increased consumer spending.

“Even though consumers have a more favorable view of the future of the economy their spending might not necessarily increase,” Graeff said. “Continued concerns about the job market and the negative effects of increasing taxes might dampen the effects of a positive outlook on consumers’ desire and ability to spend money.”

Higher taxes also are giving consumers concerns about their ability to save money now and in the future, Graeff said. You can view the report here.

— Jimmy Hart (jimmy.hart@mtsu.edu)

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Survey: Midstate consumers worry about economic prospects

December 13, 2012 By

Following a yearlong period of steady increases in consumer confidence, Midstate consumers have suddenly changed their minds and have become much less optimistic about the future of the American economy.

That’s the outlook according to the Fall 2012 Consumer Outlook Index just released by the Office of Consumer Research at Middle Tennessee State University. The survey of 422 randomly selected adult residents of Davidson, Rutherford and Williamson counties was conducted on the evenings of Nov. 27 and Nov. 29.

The overall consumer outlook index dropped sharply to 106 from 178 in September.

“Any momentum that was building to help bolster consumers’ outlook on the economy has seemingly halted,” states the report by Dr. Tim Graeff, director of the Office of Consumer Research. “This change in outlook is fueled by growing concerns about the future economy.”

The future expectations index plunged to 55 from 112. Similarly, consumers have taken a less positive view toward making large purchases, with the purchasing situation index dropped to 73 from 92.

Dr. Tim Graeff

Perceptions of the current economy are still negative, even though the current situation index gained modestly to -22 from -26.

In general, consumers continue to view the current economy negatively and have become increasing wary of the prospects for a quick turnaround in the economy, the report states.

Other highlights from the report include:

  • Taxes — Increases in taxes can decrease the amount of money that consumers have for discretionary spending. The survey showed a sharp increase in the percent of consumers who expect their tax bill to rise in the next year.
  • Stock Market —A rising U.S. stock market can give consumers a greater feeling of wealth as their investments and savings grow. The survey showed a marked increase in the percent of consumers who expect the stock market to decrease in value over the next year, coupled with a modest decrease in the percent who expect the stock market to rise in value over the next year.
  • Consumer Saving — Almost half of the consumers surveyed said they expect to increase their level of saving, while very few consumers expected to decrease their level of saving.
  • Christmas and Holiday Spending —When asked about their expected Christmas and holiday spending, fewer consumers said they expect to increase their spending compared to what they spent last year. More consumers expect to spend about the same as last year.

You can download and read the full report here.

— Jimmy Hart (Jimmy.Hart@mtsu.edu)

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