Putnam Investments Holiday Survey Finds Americans More Hopeful about the Economy in 2010
December 17 2009 - 11:40AM
Business Wire
As America heads into the holiday season, consumers are
displaying optimism tempered by realism after two years of
recession and volatile financial markets, according to a survey of
1,000 adults released today by Putnam Investments. Most surveyed
expect improvements in the economy and their personal finances, but
are planning to rein in holiday spending this year and step up
saving next year.
In fact, Americans are focused more on their financial health
than on their physical health, with “saving more” the number-one
New Year’s resolution for 2010, cited by 36 percent. Old standbys
such as “exercise more” (34%) and “lose weight” (34%) trail
behind.
“People are starting to sense the light at the end of the
tunnel, and think that both the economy and their personal finances
will start to rebound in 2010,” said Mark McKenna, Director of
Communications, Putnam Investments. “Americans have a long history
of picking themselves up and getting back in the race, and we’re
seeing a genuine – yet realistic – optimism take hold across the
country as people work hard to save and invest for the future.”
Looking Ahead to 2010: A Cautious Optimism Takes Hold
Nearly two-thirds of Americans (63%) think that stock prices
will go up in 2010 and just over half are expecting improvements in
the housing market, consumer confidence, consumer spending and
unemployment. However, caution prevails, with 57 percent expecting
that consumers will still spend less next year than they did this
year and only 40 percent expecting that the U.S. economy will be
“much healthier” in 2010.
Survey respondents were optimistic about their personal
situations, with more than half (52%) saying they were more hopeful
about their own financial health going into 2010 than they were a
year ago.
Consumers Plan to Control Holiday Spending
Although guardedly optimistic about next year, Americans
surveyed reported that they are frugal-minded as the holiday season
gets underway, hoping to avoid a financial hangover. Four in 10
(42%) say they have established an overall spending limit, 36
percent said they will pay for gifts only with cash and 33 percent
say they will limit the number of people for whom they will buy
gifts. Thirty percent say they will limit spending on holiday
entertainment and 18 percent say they will enter into a “no gift
exchange” agreement with people with whom they have exchanged gifts
in the past.
Men expect to be less restrained in their holiday spending than
women: Just 26 percent of men, but 40 percent of women, say they
will limit the number of people for whom they will buy gifts. Males
are also less likely to say they will avoid the use of credit
cards, limit spending on holiday entertainment or enter into “no
gift exchange” agreements.
Americans who hope to rein in holiday spending expect to find
support from friends and family. More than half of those surveyed
(51%) say that their family and friends would respect their need to
save more for retirement if they were to spend one-quarter less
this holiday season and instead put the money into retirement
savings. A further one in seven (15%) say that doing so might even
start a new tradition in their circle.
Americans Hope to Increase Saving
Saving is on the minds of many Americans, with a fifth (18%)
definitely planning to save more in 2010; another 30 percent hope
to do so, and a further 30 percent “hope to, but are not sure it
will be possible.” With awareness of the nation’s emergent
retirement savings challenge growing, 28 percent of those polled
specifically said they will try to save more for their retirement
in 2010. Smaller numbers intend to make additional payments to
reduce their mortgages (14%) and regularly review their 401(k)
plans and other investments (13%).
Underscoring concern about debt, one-third of respondents (33%)
said they would pay down personal debt if they received cash for a
holiday gift this year. Seventeen percent said they would use the
cash to pay for daily living expenses and 13 percent said they
would save it in an “emergency” fund.
Jobs Top Healthcare Reform as Americans’ Priority
As the year ends, pocketbook issues dominate Americans’
thoughts. When asked what would they would most like to see happen
in 2010, nearly a third (32%) said “job growth,” while 18 percent
said “U.S. economic growth.” Just one in seven (14%) said passage
of a healthcare reform bill, the issue which has consumed
Washington for much of this year.
Showing some skepticism about the effects of government action,
fewer than two in five Americans (38%) expect that consumers will
finally see the benefits of the economic stimulus package in
2010.
The online survey of 1,000 American adults was conducted by
Insight Express for Putnam Investments in November 2009.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money
management firm with over 70 years of investment experience. As of
November 30, 2009, Putnam had $114 billion in assets under
management. Putnam has offices in Boston, London, Frankfurt,
Amsterdam, Tokyo, Singapore, and Sydney. For more information, go
to putnam.com.
Putnam mutual funds are distributed by Putnam Retail
Management.
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