Consumer confidence cooled slightly in January but remains well above historical averages. While 52.3% of consumers are confident in the economy, down from December's high, this represents a 23% increase over January 2016. Consumers also showed signs of moderating spending after the holidays, with 37.2% reporting more practical purchases and 42.8% focusing only on needs. However, optimism for an economic rebound reached a new high of 37.8%, up over 6% from last year, though 38.1% remain unsure of recovery. Most consumers still believe the crisis will impact their lifestyles through 2022, primarily by sticking to budgets and scrutinizing purchases.

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January 2017
Consumer Snapshot

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sentiment strategy
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January 2017
state of the
consumer

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sentiment
consumer sentiment
in the New Year, consumer sentiment cools
m/m with 52.3% currently confident/very
confident in the economy, down two points
from December’s 14 year high
very confident/confident in chances for a strong economy
{adults 18+}
Source: Prosper Insights & Analytics
still, January’s reading represents a 23%
increase y/y and is well above the 13 month
average (45.5%)
42.5%
52.3%
30%
35%
40%
45%
50%
55%
60%

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sentiment
very confident/confident in chances for a strong economy
{adults 18+}
Source: Prosper Insights & Analytics
historical perspective
this month’s reading is the highest January
reading in the post-recession economy
50.5%
42.5%
52.3%
0%
10%
20%
30%
40%
50%
60% consumer sentiment
in the New Year, consumer sentiment cools
m/m with 52.3% currently confident/very
confident in the economy, down two points
from December’s 14 year high
still, January’s reading represents a 23%
increase y/y and is well above the 13 month
average (45.5%)

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strategy
practicality & focus on needs
{adults 18+}
practical purchases
although confidence remains elevated,
consumers are showing signs of the holiday
spending hangover
focus on needs
shoppers’ focus on necessities need jumps 5
points m/m, though this indicator is even y/y
Source: Prosper Insights & Analytics
in January, 37.2% indicate that they’ve
become more practical with purchasing, up
more than 3 points from December and
1 point y/y
42.8% indicate they are zeroing in on just what
they need when at the store in January, just
above the 13 month average (42.1%)
42.5% 42.8%
36.2% 37.2%
25%
30%
35%
40%
45%
50%
I have become more practical and realistic in my
purchases
I focus more on what I NEED rather than what I WANT

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state of the consumer
economic outlook improves
with confidence improving y/y, consumers who
are optimistic for an economic rebound increase
6%+ y/y to 37.8%
Source: Prosper Insights & Analytics
do you think the economy will ever rebound to what it was before the
recent* economic crisis? {adults 18+}
*2010 - 2014: “current” economic crisis
about as many consumers (38.1%) aren’t sure
what to think about a rebound, lowering slightly
from last year’s record high reading
the good news: pessimists continue to decline,
now at a new low (24.0%)
20%
25%
30%
35%
40%
45%
Yes No Not sure

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state of the consumer
Source: Prosper Insights & Analytics
do you think the recent* economic crisis will impact your lifestyle over
the next 5 years in any of the following ways? (top 5) {adults 18+}
*2010 - 2014: “current” economic crisis
look for cautious consumerism to
continue
while the top 5 financial “fixes” have eased
compared to 2010, nearly 3 out of 4 consumers
indicate that the economy will impact their
lifestyle into 2022
economic outlook improves
with confidence improving y/y, consumers who
are optimistic for an economic rebound increase
6%+ y/y to 37.8%
about as many consumers (38.1%) aren’t sure
what to think about a rebound, lowering slightly
from last year’s record high reading
the good news: pessimists continue to decline,
now at a new low (24.0%)
0% 10% 20% 30% 40% 50% 60%
I will try to stick to a
budget
I will consider each
purchase more carefully
I will be more price
conscious when buying
clothing and food
I will not incur a large
credit card debt
I will spend less dining out
Jan-10 Jan-16 Jan-17

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Pam Goodfellow
Consumer Insights Director
Prosper Insights & Analytics™
pam@goProsper.com
ProsperDiscovery.com
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