Uptick in Consumer Spending Online Projected for Q2
Consumer spending online, which has shown more immunity to the market conditions, is projected to increase eight percent this quarter to $267 compared to an average of $247 last quarter. The survey is conducted by Javelin Strategy & Research and released quarterly by eBillme.
Despite the slight uptick in online spending, the outlook for offline retail sales remains bleak. This quarter’s Index shows a decline in consumer confidence as we approach the 100-day mark for the Obama administration. Consumer sentiment towards the economy in general and confidence in overall spending has decreased from last quarter. 39 percent of consumers reported having more confidence in the economy with the 100-day anniversary of the Obama administration approaching. This is down from 51 percent who expected to have more confidence once the new administration began. And when it comes to confidence in overall spending, 19 percent feel more comfortable increasing their everyday spending this quarter, a decline from 28 percent who expected to feel comfortable increasing spending during Q1.
“The slight uptick in online spending this quarter is further evidence that the online retail sector is better withstanding the economic conditions,” says Bruce Cundiff, Director of Payments Research and Consulting for Javelin Strategy & Research. “Overall, consumers are still spending more responsibly and with caution. As we approached inauguration day during Q1, confidence was strong and consumers were hopeful. The continued economic strain, increasing job loss, and consumer debt over the last 90 days has taken a toll on confidence this quarter.”
The eBillme Online Spending Index polled 1,200 consumers to measure projected online spending for the quarter and the influencing factors including the economy, security, and financial control. This quarter’s Index also surveyed respondents about Mother’s Day spending to learn what type of holiday retailers can anticipate this year
- 20 percent of respondents plan to make their Mother’s Day purchases online this year.
- 9 percent of consumers anticipate spending more this year for Mother’s Day.
“Overall cautious spending is carrying over from Q1,” says Marwan Forzley, President and CEO of eBillme. “Purchase delays and spending trends have remained steady as a result of faltering confidence. Over half of consumers surveyed are still delaying purchases due to uncertainty in the economy. Shoppers remain hesitant to spend extravagantly and when they do, they are making decisions to spend more responsibly using cash. We are seeing the demand continue to increase for cash checkout online as shoppers focus on limiting debt.”
eBillme and Javelin Strategy & Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on April 30th at 1PM EST. To register, please visit https://www2.gotomeeting.com/register/676120659.
