The third and final phase of Arvest Bank’s fall Consumer Sentiment Survey found Missourians are holding on to their savings.
Conducted by the Center for Business and Economic Research at the University of Arkansas Sam W. Walton College of Business, the study analyzes the results of over 1,200 phone surveys performed by the University Oklahoma’s public opinion learning laboratory during October. The study examines a regional outlook, as well as that of Missouri, Oklahoma and Arkansas.
Survey results indicate 21 percent of respondents plan to increase their savings rate, up from 15 percent in Arvest’s June survey. In Missouri, 70 percent of respondents said they would keep their current savings rate the same and 9 percent stated they would decrease their savings rate. Regionally, 20 percent plan to increase their rate, 71 percent will keep it flat and 8 percent will decrease it.
As far as expenditures, 35 percent of Missourians made a major household purchase - items such as furniture, TVs and refrigerators - in the past six months, down from 38 percent in June. When asked if they plan to make a major purchase in the next six months, 27 percent of Missouri respondents indicated they would and 73 percent said they wouldn’t. The regional average was 24 percent for respondents planning to make a purchase and 76 percent who weren’t planning to make a major expenditure, according to the survey.
Missouri State University Bureau of Economic Research Director David Mitchell, who was retained by Arvest to analyze survey results, said the findings indicate increased confidence in the economy tempered with caution.
“Over the past several years, the economy has had a few quarters of relatively strong growth only to see that growth fade away and not take root. This roller coaster in economic growth has happened many times and consumers are adopting a ‘show-me’ attitude towards future planned purchases,” Mitchell said in a news release. “Further evidence is even more noticeable when one looks at planned future savings.
“Although a large majority of households were planning to maintain their savings rate, more than one out of every five households was planning on increasing their savings rate. We know that this extra savings isn’t for future purchases because three out of four households have no plans to purchase a major household item in the next six months.”[[In-content Ad]]
