Consumer confidence increased to its highest level since 2007, with 44.7% of Americans feeling confident or very confident about the economy. While consumers still favor practical purchases, practicality and a focus on needs have receded from previous years. More consumers plan to increase holiday spending this year compared to last, and a consumer spending index is up 25% year-over-year, indicating optimism for the 2014 holiday season.

1. www.ProsperDiscovery.com
Consumer Snapshot
september 2014

2. www.ProsperDiscovery.com © 2014, Prosper®
sentiment
strategy
september 2014
Disclaimer: Prosper Business Development and its affiliated companies (“Prosper”) make no warranties, either expressed or implied, concerning: data gathered or obtained from any source; the present or future methodology employed in producing the statistics; or the data and estimates represent only the opinion of Prosper and reliance thereon and use thereof shall be at the user’s own risk.
holiday preview

3. www.ProsperDiscovery.com © 2014, Prosper®
sentiment
consumer confidence
sentiment perks up three points from August to 44.7%, the highest reading since pre-recession Oct-07 (44.8%)
very confident/confident in chances for a strong economy {adults 18+}
Source: Prosper Insights & Analytics
37.4%
28.3%
43.2%
44.7%
20%
25%
30%
35%
40%
45%
50%
Govt.
Shutdown
13 month summary
finally breaking free from the 42%-ish holding pattern that has characterized 2014, current confidence in the economy is tracking 20% ahead of Sep-13 and just above the previous 13 month high in Jan-14

4. www.ProsperDiscovery.com © 2014, Prosper®
sentiment
very confident/confident in chances for a strong economy {adults 18+}
has confidence finally recovered?
not only does the current figure represent the first September reading to register above 40% since the Great Recession, but it eclipses pre-recession Sep-07 (41.2%)
Source: Prosper Insights & Analytics
consumer confidence
sentiment perks up three points from August to 44.7%, the highest reading since pre-recession Oct-07 (44.8%)
13 month summary
41.2%
28.3%
29.8%
27.4%
22.7%
37.9%
37.4%
44.7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
is this elevated level of confidence sustainable?
finally breaking free from the 42%-ish holding pattern that has characterized 2014, current confidence in the economy is tracking 20% ahead of Sep-13 and just above the previous 13 month high in Jan-14
Sep-14 also marks the highest September reading since 2004 (45.6%)

5. www.ProsperDiscovery.com © 2014, Prosper®
strategy
practicality & focus on needs
{adults 18+}
practicality eases
while the increase in confidence didn’t deter consumers’ penchant toward practicality, the current reading (42.4%) has lowered 10%+ from a year ago
consumers are allowing their eyes to wander when at the store, however, as 46.9% report that they focus on just the necessities, dropping three points from August
fewer focus on needs
Source: Prosper Insights & Analytics
48.1%
42.4%
51.9%
46.9%
30%
35%
40%
45%
50%
55%
I have become more practical and realistic in my purchases
I focus more on what I NEED rather than what I WANT

6. www.ProsperDiscovery.com © 2014, Prosper®
strategy
practicality & focus on needs
{adults 18+}
practicality eases
while the increase in confidence didn’t deter consumers’ penchant toward practicality, the current reading (42.4%) has lowered 10%+ from a year ago
consumers are allowing their eyes to wander when at the store, however, as 46.9% report that they focus on just the necessities, dropping three points from August
fewer focus on needs
Source: Prosper Insights & Analytics
while practicality and focus on needs have receded since their height during the recession, these indicators remain elevated compared to pre-recession Sep-07
the “new normal” still applies
36.7%
51.1%
42.4%
43.2%
58.4%
46.9%
0%
10%
20%
30%
40%
50%
60%
70%
Sep-07
Sep-11
Sep-14
I have become more practical and realistic in my purchases
I focus more on what I NEED rather than what I WANT
additionally, consumers remain focused on paying down debt and increasing their savings

7. www.ProsperDiscovery.com © 2014, Prosper®
holiday preview
preliminary holiday gift spending plans
{adults 18+ who have holiday spending plans in mind}
will spending perk up in 2014?
those planning to spend “more” on gifts this holiday season rises to 12.0% from 8.7% a year ago, while fewer (33.2%) plan to spend “less” y/y
Source: Prosper Insights & Analytics
54.8%
33.2%
12.0%
0%
10%
20%
30%
40%
50%
60%
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
I plan on spending more for gifts than last year.
I plan on spending the same for gifts as last year.
I plan on spending less for gifts than last year.

8. www.ProsperDiscovery.com © 2014, Prosper®
holiday preview
Prosper Holiday Spending Score vs. Estimated Holiday Gift Spending
{adults 18+ who have holiday spending plans in mind}
will spending perk up in 2014?
Source: Prosper Insights & Analytics, National Retail Federation
Prosper Holiday Spending Score
Score has risen 25% y/y, an encouraging sign from consumers
* 2009 - 2012 represent estimated actual holiday gift spending; 2013 represents planned holiday gift spending
directionally speaking, the Score has served as a relatively accurate bellwether for consumers’ holiday intentions
$507
$541
$543
$551
$537
$300
$350
$400
$450
$500
$550
$600
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009
2010
2011
2012
2013
2014
Holiday Gift Spending (October)*
Prosper Holiday Spending Score (September)
?
those planning to spend “more” on gifts this holiday season rises to 12.0% from 8.7% a year ago, while fewer (33.2%) plan to spend “less” y/y

9. www.ProsperDiscovery.com © 2014, Prosper®
holiday preview
Prosper Holiday Spending Score, Indexed to Adults 18+ (Baseline = 100.0)
{shoppers of select retailers}
will spending perk up in 2014?
Source: Prosper Insights & Analytics
Prosper Holiday Spending Score
Score has risen 8% y/y, an encouraging sign from consumers
directionally speaking, the Score has served as a relatively accurate bellwether for consumers’ holiday intentions
further investigation revealed that Amazon, Costco, and Macy’s shoppers have some of the most optimistic outlooks for Holiday 2014
for more: Forbes.com
119.4
114.5
110.5
105.0
101.3
101.2
100.5
97.4
94.2
94.1
93.2
93.0
91.8
89.5
82.5
Amazon.com
Costco
Macy's
Sam's Club
Best Buy
Nordstrom
Target
JC Penney
Walmart
TJ Maxx/Marshall's
Kmart
Sears
Kohl's
Ross
Dollar General
those planning to spend “more” on gifts this holiday season rises to 12.0% from 8.7% a year ago, while fewer (33.2%) plan to spend “less” y/y

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thanks
visit ______________________to access:
Consumer Snapshot InsightCenter™
PowerPoint Slides
…and more
Pam Goodfellow
Consumer Insights Director
Prosper Insights & Analytics™
pam@goProsper.com
ProsperDiscovery.com
ConsumerSnapshot.com
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