Consumers see rosier financial future

06.04.09
By Sarah Beldo

It seems that Americans' view of the country's financial health is finally brightening - however, consumers say they aren't yet confident enough to break out the credit cards and start spending again.

The Discover U.S. Spending Monitor registered an index reading of 86.2 in May - the highest level seen since September. More than one-quarter (27 percent) of respondents said they see the economy improving, while less than half (49 percent) said it was getting worse.

The country's economic health is one thing, but what about people's feelings about their personal financial situation? Well, 20 percent said their own finances are getting better - a high not seen since September.

However, that doesn't mean that people are ready to change their thrifty spending habits. The monitor indicates that Americans are preparing to spend more on necessary household expenses in the next month, but are still holding back when it comes to discretionary purchases.

Discover suggests that rising gas prices may have something to do with this trend. Perhaps credit card debt, mortgage payments and other financial obligations are also playing a role.

"Consumers definitely see brighter days ahead even though currently, things don't seem that great," said Julie Loeger of Discover Financial Services. "Hopefully, the worst is over and the improving economic and financial trends the monitor has shown for the last three months will continue."

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The economy is improving but consumers are still holding back.