Back-to-School spending Drops by more than 12 Percent

Parents Holds Back from Spending Due to Looming Economic Situation

Summary: A consumer research group on Tuesday said that back-to-school season will be less exciting and less profit for business as more and more parents are trying to save up due to the crisis.

Job security, debt, and lowered income are the main reason why US consumers are limiting spending.

Due to declining income, low job security, and higher debt rate, a consumer research group on Tuesday said that customer spending will be lessen by more than 12 percent in this year’s back-to-school season.

In a statement, retail industry America's Research Group and financial firm UBS on Tuesday said that consumer spending will be 12 percent lower this year as more and more cash-trapped parents are saving up this season due to the looming effect of the economic crisis.

Based on the results, some 34.4 percent of parents planned to save up and spend less this season while 41.8 percent of consumers said that they have less money to buy new fashion for the busiest season of the year. Some 40.5 percent, on the other hand, said that they need to cut spending due to higher debt while 8.2 percent said that they need to save up for future needs.

The back-to-school is the busiest season for shopping next to the Christmas season.

The survey also showed that more and more parents said that they will shop at Wal-Mart outlets for their children’s clothing and school gears. The company has been one of the top choices among parents since the start of the recession due to lower prices.

Back-to-School spending Drops by more than 12 Percent

Parents Holds Back from Spending Due to Looming Economic Situation

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