Business @ AsiaOne

Spending less in US

How Americans are cutting back to ease the bite of the downturn. -TNP

Sat, Apr 11, 2009
The New Paper

By Zhen Ming

AS this recession starts to bite, most of us (regardless of how much we still earn) have cut back on many fronts - from swopping store-bought sandwiches for packed lunches to skipping pints in the pub for cans at home.

We may not have a statistical lowdown on how Singaporeans have subtly cut back but how people in the US and other developed countries are adjusting their lifestyles right now may give you an idea.

According to a recent USA Today/Gallup Poll, 55 per cent of Americans say they are seeking cheaper options.

Even the relatively well-off have also become more tight-fisted. More are eating out less often (81 per cent), going to movies fewer times (72 per cent) and putting off holidaying abroad (63 per cent).

How else Americans have cut back:

Eating at home: Cutting back on dining out is the No. 1 or No. 2 money-saving move for Americans, no matter their income.

Trimming grocery costs: Coupon use is increasing after 15 years of decline, according to the Promotion Marketing Association's Coupon Council.

Taking extra job(s): The number of American moonlighters have increased to around 2million, according to the US Bureau of Labor Statistics.

Buying fewer luxuries: Half of luxury shoppers with average incomes of US$210,700 ($320,000) a year who were surveyed said they are spending less on luxury items now than a year ago, reported Unity Marketing.

Watching more movies at home: More people are buying DVDs and watching them, according to Home Media Magazine.

DIY hair-dye kits: A recent survey found that hair-dye sales in the UK went up by 27 per cent. Four in 10 customers also cut back on trips to the hairdressers.

Drinking tap water: Good news for the environment. Sales of bottled water are down 15 per cent year on year, according to a survey.

No more branded food labels: Shoppers are checking out more own-label value lines. UK chain Sainsbury's Basics range is growing at 40 per cent a year and six in 10 customers buy own-brand items.

Mending your old clothes: Fashion is falling out of fashion as we make do and mend. Retail sales of clothing and household goods are down 1.8 per cent last year, according to the UK Office for National Statistics. Meanwhile, sales of buttons are up 43 per cent and sales of sewing machines are 50 per cent higher.

Zhen Ming, a Harvard-trained economist based in Singapore, is a freelance contributor.

This article was first published in The New Paper.

 
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