Helping Americans Achieve the Changes They Seek

Impacting consumers
What impact has the economic downturn had on consumer spending, which accounts for nearly 70 percent of the country’s total economic activity? Consumer spending fell 0.5 percent in September, which marked the first decline in five months. The Commerce Department reported that during the third quarter current-dollar personal income fell 0.5 percent after rising 0.6 percent. Real disposable personal income, which is income adjusted for inflation and taxes, declined 3.4 percent in the third quarter after increasing 3.8 percent in the second quarter.

In a survey conducted by Parade magazine about the changes in the economy and the impact they have had on Americans, 79 percent of respondents said they’ve felt the impact of the financial downturn. One third said the recession has had a dramatic impact on their lives. The result has been that Americans have made significant financial adjustments in their daily lives with most indicating they have cut back on spending. Most of the spending cuts are related to big-ticket purchases.
The Parade survey found that 68 percent of Americans believe it is important to create a meaningful life and to give back, with 83 percent reconsidering what they actually need in life.

The economic changes have caused Americans to make positive changes in their lives, including: devoting more time to learning new skills (43 percent), exercising more (43 percent), becoming more do-it-yourselfers (63 percent), connecting with old friends (46 percent) and forming stronger relationships with their spouses (52 percent). All of these changes are touch points for our industry’s products. Are we taking full advantage of showing Americans how our products can help them achieve a more meaningful life? Are Americans connecting with our products on an emotional level?