The overall retail outlook is relatively flat year-over-year echoing the sentiment we’re still seeing from consumers regarding the lackluster economy and conservative, budget-minded spending plans.
Worthington, Ohio (PRWEB) June 19, 2014
Building upon its offering of Smart Data apps that deliver strategic insights for executives, Prosper Insights & Analytics™ has released the Prosper Consumer Spending Forecast to help retailers project sales in a slow growing economy. The Forecast can be viewed by specific retail shoppers and consumer groups and provides a future view of their intended level of retail spending over the near term. It gives decision makers a better understanding of how different consumer groups spend in certain categories, allowing them to react accordingly to the changing demands of the market.
Pam Goodfellow, Prosper’s Principal Analyst, recently presented the June Consumer Spending Forecast at a luncheon hosted by Morgan Stanley. For Part 1 of Morgan Stanley’s Consumer Spending Outlook – 2014, click here.
“The overall retail outlook is relatively flat year-over-year echoing the sentiment we’re still seeing from consumers regarding the lackluster economy and conservative, budget-minded spending plans,” Goodfellow told the group of investors.
The June Consumer Spending Forecast is 78.9, relatively flat year-over-year (+0.3%). Compared to June 2007, the current Forecast represents a planned spending increase of 2.6%. However, this is the first June reading since 2009 not to see a significant increase year-over-year.
While the Consumer Spending Forecast is flat overall, its breakdown by category reveals variances. Planned spending on staples is down 1.5% compared to June 2013 with intended grocery spending driving the decline. Discretionary spending has risen 1.7% year-over-year and represents the strongest June forecast for the discretionary category since June 2007.
“Discretionary spending seems to be the more bullish category—which is encouraging,” said Goodfellow. “But this enthusiasm should be tempered with the fact that discretionary spending is the first area consumers cut back when they sense trouble.”
The positive forecast for discretionary is driven by increases in planned expenditures in softlines, largely due from year-over-year increases in the dining out category as well as adult and children’s apparel. Hardlines is down 1.0% over last year with declines in planned spending on electronics and home furniture contributing to this weak outlook.
To view the June Consumer Spending Forecast report, click here. A complimentary collection of Smart Data Apps, including the spending forecast are available at http://www.SmartDataShowcase.com. You can find the forecast under the “Spending Outlook” tab. (Basic access is complimentary.)
About the Prosper Consumer Spending Forecast
The Consumer Spending Forecast is the result of a four year analysis of government and proprietary data and derived from two established databases (the Bureau of Labor Statistics’ Consumer Expenditure Survey and Prosper’s Monthly Consumer Survey). It is based on 90-day spending intentions data representing consumers' intended spending levels in 20 retail categories. Using its InsightCenter™ technology, which easily integrates data sets from various sources, Prosper connected this purchase intentions data with data from the Bureau of Labor Statistics' Consumer Expenditure Survey to project consumers’ intended spending levels by demographic and specific retail channels over the next three months. The forecast shows both opportunities and challenges specific retailers may encounter based upon their customers’ spending plans.
Prosper Insights & Analytics™
Prosper Insights & Analytics provides advanced business intelligence using sophisticated analytical software to examine big datasets and provide answers to executives via its cloud-based InsightCenter™ platform powered by Prosper Technologies. By integrating a variety of data including economic, behavioral and attitudinal data, Prosper Insights & Analytics delivers insights for executive decision making. Further, it is continually identifying unique insights through analytics to enable marketers to make knowledge-based decisions rather than relying on intuition. To learn more, visit: http://www.ProsperDiscovery.com
Chrissy Wissinger, Director, Communications
Stacie Severs, Client Services & Marketing Director