Georgians' Holiday Spending Plans Reflect Current Consumer Mindset

/PRNewswire/ -- While not pulling back to Scrooge-ish extremes, Georgia merchants may again face cautious shoppers this holiday season, according to the latest poll from Georgia Credit Union Affiliates (GCUA).

While about half (52.8 percent) of nearly 6,000 credit union members surveyed statewide said they plan to spend about the same as last year, 44.3 percent indicated that they plan to spend less on the holiday season than in 2009. This statistic appears to reflect a continued trend in austerity around gift-giving, given that 51.2 percent of respondents to GCUA's survey in 2009 said they planned to spend less on the holidays than the previous year.

Backing up the latest poll numbers, data from 39 credit unions statewide shows Georgia consumers have a penchant for bolstering their account balances. During the first nine months of 2010, savings deposits grew by 6.3 percent and checking account balances increased by 11.4 percent.

The poll results and credit union data are included in the latest "Paying Attention" report from GCUA, gauging the mindset of Georgia consumers on economic and personal finance. The report also recaps quarterly lending and saving statistics from credit unions statewide.

"Shoppers who already trimmed their spending in 2009 will be frugal again this year," said Mike Mercer, president and CEO of GCUA. "The poll results appear to bear that out, with just 2.9 percent of respondents saying they plan to spend more this holiday season."

Overall, the poll found that:

* 52.8 percent plan to spend about the same this holiday season as last year, while 44.2 percent plan on spending less. Only 2.9 percent plan on spending more this holiday season than last year.
o In 2009, 51.2 percent said they planned to spend less than the previous year while 45.4 percent planned to spend about the same. 3 percent expected to spend more in 2009 compared to the year before.
* Most shoppers still plan to spend modest amounts on gifts. 43.9 percent of respondents are planning to spend between $100 and $500 while 28.7 percent are planning to spend between $500 and $1,000. In a true turn toward austerity, 16.4 percent said they plan to spend less than $100 in total on gifts this year; conversely, 11 percent plan to spend more than $1,000.
o Last year, 47.9 percent said they planned on spending between $100 and $500 in total, 30.8 percent planned on spending between $500 and $1,000 and 11.4 percent said they were going to spend less than $100, and 9.9 percent planned on spending more than $1,000.
* The majority of respondents (77.8 percent) are planning to pay mostly or completely by cash compared to 17.3 percent who plan to pay using a credit card. 4.9 percent plan to use savings from a Christmas club account or other means.
o In 2009, 75.6 percent said they planned on paying all or mostly by cash compared to 11.8 percent who planned on paying all or mostly by credit card. 12.7 percent said they would pay with savings from a Christmas club account or other means.


Credit Union Data Shows Continued Trend Toward Savings

In addition to the consumer poll, GCUA compiled data from 39 credit unions from across the state representing 90 percent of credit union assets and 82 percent of members in Georgia to gauge current lending and savings trends. The data compare year-to-date figures from the first nine months of 2010 to the same period in 2009. Summarized below, the findings indicate a continued trend toward savings among consumers, while figures for lending varied (all rates are annualized):

* Compared to the same period last year, savings deposits grew by 6.3 percent during the first nine months of 2010 and by 7.1 percent over the past year.
* Checking account balances increased by 11.4 percent between January and September and by 16.5 percent over a 12-month period.
* Money market account balances grew by 23.8 percent during the first three quarters of the year and by 35.6 percent over the previous 12 months.
* New vehicle loan balances decreased by 9.7 percent over the past year; however, balances for used car loans increased more than 7.7 percent in the first nine months of 2010, and 10 percent over the past 12 months.
* First mortgage balances increased by 5.8 percent during between January and September and by 12.5 percent over a 12-month period.
* The number of bankruptcy filings among members rose by 13.8 percent over the past 12 months.


"Credit union members represent a good cross section of middle-class Georgians," Mercer said. "Our latest report shows that Georgia consumers seem to be settling into a routine of conscious saving and cautious spending."

More information is available at www.georgiacreditunions.org or on www.facebook.com/creditYOUnion.

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Majority of Voters Expecting Double-Digit Tax Increases in Next 10 Years

/PRNewswire/ -- PJTV's Tea Party TV today unveiled the results of its weekly Tea Party tracking poll, which revealed that 71 percent of likely voters and 76 percent of Independents believe there will be a tax increase of 10 percent or more if current federal spending habits continue.

"Voters overwhelmingly believe the government's spending habits will force lawmakers to increase taxes by double-digit amounts," said Roger L. Simon, CEO of Pajamas Media. "In the last two years, Washington has lifted the debt ceiling twice, extending the limit by $2.2 trillion. Now, Americans - especially Republicans and Independents - are translating that national public debt into a personal financial burden."

When asked about the potential of a tax hike of 20 percent or more, only Democrats were skeptical. Majorities of Republicans (58 percent) and Independents (50 percent) thought this to be a real concern while only 18 percent of Democrats were anxious of this outcome.

The weekly PJTV/Pulse Opinion Research nationwide survey of 1,000 likely voters tracks Tea Party support as well as provides a snapshot of public opinion regarding the week's top issues. In addition to the weekly Tea Party tracking questions, this week's special question asked voters whether they believed taxes would decrease, stay the same, or increase by 10, 20, or 30 percent.

"The poll revealed that support for the Tea Party movement is holding strong at more than 50 percent," said Vik Rubenfeld, PJTV's Polling Director. "Moreover, we are seeing movement in the portion of likely voters who support the movement in the public arena. Today, 39 percent of likely voters report they publicly support the Tea Party, increasing from 33 percent three weeks ago."

Poll Highlights
-- 71 percent of likely voters and 76 percent of self-identified
Independents believe taxes will increase by 10 percent or more in the
next 10 years. Meanwhile, 42 percent of likely voters and 50 percent
of self-Independents believe they will increase by 20 percent or more.
-- 55 percent of likely voters support the Tea Party movement.
-- 39 percent of likely voters support the Tea Party movement publicly,
compared to 35 percent on August 22 and 33 percent on August 15.


Methodology

The Tea Party Tracking Study is a PJTV survey. The telephone survey of 1,000 Likely Voters was conducted by Pulse Opinion Research on August 29, 2010. Pulse Opinion Research, LLC is an independent public opinion research firm using automated polling methodology and procedures licensed from Rasmussen Reports, LLC. Margin of Sampling Error, +/- 3 percentage points with a 95% level of confidence.

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