Nielsen Report: Consumer Spending is On the Way Up

RADIO ONLINE | Tuesday, November 10, 2020 | 7:43am CT

Some refreshing positive news from an October consumer lifestyle survey conducted by Nielsen Audio. They found that 53% of Americans believe life is starting to normalize, are more likely to resume typical activities and are starting to shop more as restrictions permit. That doesn't mean, however, that these consumers are disregarding health and safety. The study also found that the people who are ready to get out also feel more confident about avoiding risk and staying safe when they leave their homes.

Some highlights:

• Consumer spending is up, with 25% reporting they are more likely to travel, 19% more likely to go out to eat, and 14% more likely to shop.
• 48% of heavy radio listeners are more likely to make a major purchase, like an appliance, and they're 45% more likely to visit a car or truck dealership.
• 70% of radio listening between March and October happened away from the home, in-home tune-in remained steady.

Consumer sentiment about resuming spending is in line with recent data from the U.S. Bureau of Economic Analysis (BEA), which indicated $201.4 billion in consumer spending growth in September. While consumer spending accounts for two-thirds of the country's economic activity, it's also a huge part of getting back to normal routines.

It's worth noting that the more than $3 trillion in federal pandemic relief played a big role in driving this year's third-quarter economic growth. Despite the depletion of that stimulus, the U.S. unemployment rate, as reported by the Bureau of Labor Statistics, has been trending downward since peaking at 14.7% in April. The most recent addition of 661,000 nonfarm jobs in September cut the unemployment rate to 7.9%.

Despite the recent rise in new COVID-19 cases in the U.S., consumer sentiment among Americans remains among the highest in the world, with second-quarter consumer confidence (as reported by the Conference Board) clocking in at an index level of 102 (2 index points above the baseline of 100). Combined with eased business restrictions across the country, the marginally optimistic mindset of consumers, a better understanding about how to stay healthy-and perhaps a dash of cabin fever-have influenced a majority of Americans to begin spending on non-essentials, including out-of-home dining, non-food retail and travel.

Read the entire report HERE.