Retail - NPD’s Economy Tracker Shows More Consumers Plan to Increase Purchasing

The latest information from leading market research company The NPD Group, Inc. shows a continued upward trend in consumer purchase intentions.

NPD’s Retail Response Indicator rose 4.5 points, from 39.5 points in April to 43.9 points in May. This is a continuation of the upward trend first seen from March to April. The Retail Response indicator measures consumer spending intentions on a 0 to 100 scale, with 0 representing “Reduce or Spend Less” and 100 representing “Spend More.”

“The continued increase suggests that stabilization is holding,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “We are seeing consumers move toward replacement and replenishment purchasing and these are the kinds of purchases that would indicate we have taken the first step toward recovery.” Cohen added, “It is also important to note that the longer stabilization holds the more solid the foundation on which we can build a strong recovery.”

Survey respondents continued to show less concern about the security of their jobs. Once again, the percentage of those feeling “very concerned” about the security of their job or income dropped.

“While consumers are still registering concern about their jobs, overall their concerns are diminishing. And as concerns about job security diminish, retail sales continue to stabilize,” noted Cohen.