NPD’s Economy Tracker Shows Consumer Perceptions of the Economy Moving in a More Positive Direction

The latest information from leading market research company, The NPD Group, Inc.’s (NPD) Economy Tracker shows consumer sentiment is on the rise and concern regarding job security is decreasing.

NPD’s General Economic Perception Indicator rose from 36.5 points in March to 40.8 points in April. The indicator measures consumer concerns regarding the economy on a scale between 0 and 100, with 0 being “Very Concerned” and 100 being “Very Confident.”

“These results are encouraging and indicate that the consumer is feeling more positive about the state of our economy,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc.

The survey also showed a 7% decline in the number of consumers who are “very concerned” about the security of their jobs. “How consumers feel about the security of their incomes has an impact on how they respond at retail,” noted Cohen.

This decreasing concern regarding job security may have been a factor in the up-tick of the Retail Response Indicator, which increased almost four points from 35.9 in March to 39.5 points in April. “Consumers are telling us they are still buying only what they need and that they are motivated to purchase by sales and special promotions.” said Cohen. 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.”

“As news of our economy continues to improve and reach the ears of consumers, we will see that they are starting to move beyond just purchasing necessities. This movement is critical as we begin to progress through this period of stabilization," concluded Cohen.

The Economy Tracker is based on online surveys completed by 1,000 respondents each month. The sample is nationally representative. Results are delivered in 12 monthly reports, quarterly summaries and a year-end analysis.