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13 June 2005
New York , NY
The U.S. is number one when it comes to the percentage of the population that claims to “have no spare cash,” according to a new ACNielsen survey of consumers in 38 markets. More than one-quarter (28%) of U.S. respondents said once they have covered their essential living expenses they have no money left over.
Markets With Highest Percentage of Consumers Who Have No Spare Cash (Global Average = 13%)
|
Markets With Lowest Percentage of Consumers Who Have No Spare Cash (Global Average = 13%) |
Ten Highest |
Market |
% With "No Spare Cash" |
Ten Lowest |
Market |
% With "No Spare Cash" |
1 |
United States |
28% |
29 |
Philippines |
8% |
2 |
Portugal |
24% |
30 |
Taiwan |
8% |
3 |
Brazil |
23% |
31 |
China |
7% |
4 |
Chile |
21% |
32 |
India |
7% |
5 |
Korea |
19% |
33 |
Ireland |
7% |
6 |
Canada |
19% |
34 |
Mexico |
7% |
7 |
Netherlands |
19% |
35 |
Spain |
7% |
8 |
Denmark |
18% |
36 |
Indonesia |
5% |
9 |
Sweden |
17% |
37 |
Russia |
5% |
10 |
Greece |
17% |
38 |
Thailand |
5% |
Source: ACNielsen Online Consumer Confidence Study
The U.S. findings were consistent with the results of a similar survey ACNielsen conducted in October 2004. Of U.S. consumers who do have spare cash, their first priority for that money continues to be debt repayment, with a growing number citing that choice compared to the 2004 survey. As indicated in the chart below, the percentage of U.S. consumers choosing the spending categories of out of home entertainment, clothing, and new technology has declined. The only spending area to increase was “Home improvements, decorating.”
| Once you have covered your essential living expenses, which of the following statements best describes how you normally spend your spare cash? |
May 2005 |
October 2004 |
| Pay off debts, credit cards, loans |
37% |
33% |
| I have no spare cash |
28% |
28% |
| Savings |
23% |
23% |
| Home improvements, decorating |
21% |
20% |
| Out of home entertainment |
21% |
29% |
| New clothes |
15% |
21% |
| Holidays/Vacations |
14% |
N/A |
| New technology |
9% |
10% |
| Stock/Mutual fund |
7% |
5% |
| Retirement fund |
7% |
N/A |
| Short holiday locally |
N/A |
10% |
| International holidays |
N/A |
2% |
Source: ACNielsen Online Consumer Confidence Study
"On a daily basis, Americans are exposed to two competing messages: ‘A strong economy is dependent upon strong consumer spending;’ and ‘Your consumer debt levels are too high,’” said Tom Markert, ACNielsen’s chief marketing and client service officer. “Historically, the first message has driven consumer behavior more so than the second one. Lately, it seems, the second message is starting to get some traction.”
While more Americans appear to be investing than last fall, the U.S. still ranks near the bottom of all countries surveyed in terms of setting money aside for the future. When totaling the percentage of respondents who said they use spare cash for savings, stock or mutual funds, and/or a retirement fund (respondents could choose more than one answer), the U.S. ranked 33rd out of the 38 countries surveyed.
Markets With Highest Percentage of Consumers Who Use Spare Cash for Savings, Stock/Mutual Funds, and/or Retirement Funds
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Markets With Lowest Percentage of Consumers Who Use Spare Cash for Savings, Stock/Mutual Funds, and/or Retirement Funds |
Ten Highest |
Market |
% Saving or Investing |
Ten Lowest |
Market |
% Saving or Investing |
1 |
India |
113% |
29 |
Turkey and Switzerland |
40% |
2 |
Taiwan |
108% |
30 |
Denmark |
39% |
3 |
Singapore |
91% |
31 |
Russia |
39% |
4 |
Indonesia |
89% |
32 |
United Kingdom |
39% |
5 |
Hong Kong |
82% |
33 |
United States |
37% |
6 |
Philippines |
82% |
34 |
Brazil |
36% |
7 |
China |
80% |
35 |
Chile |
36% |
8 |
Malaysia |
80% |
36 |
Portugal |
33% |
9 |
Thailand |
72% |
37 |
Poland |
32% |
10 |
Austria and Japan |
65% |
38 |
Greece |
31% |
Source: ACNielsen Online Consumer Confidence Study
“Overall, this research paints a cautionary picture for the U.S. economy,” Markert said. “While Americans may never be world leaders when it comes to savings, there appears to be a growing interest in reducing debt which brings with it a reduction in spending on some of the more discretionary areas such as entertainment and clothing.”
Americans’ biggest concern over the next six months is the economy, far out-distancing concerns over terrorism or war.
| What is your biggest concern over the next six months? |
United States |
38 Market Averages |
| The economy |
30% |
22% |
| Job security |
15% |
22% |
| Health |
15% |
17% |
| Other concern |
14% |
12% |
| Terrorism |
9% |
5% |
| War |
7% |
2% |
| Crime |
4% |
7% |
| None |
4% |
6% |
| Political stability |
3% |
7% |
Source: ACNielsen Online Consumer Confidence Study
The findings come from the ACNielsen Online Consumer Confidence Survey, the largest twice-yearly global survey of its kind, which gauges consumers’ current confidence levels, spending habits/intentions and current major concerns. The survey, which took place last month (May 2005) over the Internet, polled more than 21,100 respondents in 38 markets: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Japan, South Korea, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Turkey, UK, USA. All markets had sample sizes of approximately 500, except for China, France, Germany, UK and USA, which had sample sizes of approximately 1000. The survey has a margin for error of plus or minus 3.3% to 4.4%.
To see an overview of the entire ACNielsen Global Consumer Confidence & Opinions Survey please visit http://www.acnielsen.com.
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.
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