Are consumers looking ahead?

The consumer confidence index increased to 52.5 (1985=100) in March according to the most recent data from The Conference Board. That’s an increase of 6.1 percentage points from February’s reading of 46.4. And, while this is not a huge increase, economists can be encouraged that consumers are feeling a little more optimistic about the future of the economy.

So, what will it take for consumers to feel more confident and increase spending? For some economists, the answer, simply put, is job stability. According to the American Express Spending and Saving Tracker survey, six out of ten consumers who feel their jobs are stable have increased their overall spending and investments, showing a direct correlation between consumer confidence and spending. Conversely, those who feel less stable in their current jobs are less inclined to increase overall spending.

And while unemployment rates have held steady at 9.7% per the Bureau of Labor Statistics, discretionary spending intentions have stabilized. Fifty-seven percent of consumers plan to spend the same amount of money on discretionary spending as they did in February according to the Discover U.S. Spending Monitor survey.

So, maybe this doesn’t equate to a return in big spending but it does show that consumers are trying to budget their finances and get back to spending that is comfortable for them in the current economy.

According to Julie Loeger, senior vice president at Discover, “The Monitor has shown in the last couple of months an increase in the number of consumers balancing their budgets and having money left over. If this trend continues, it hopefully will give consumers some financial confidence.”

Rosalind Wells, chief economist of the National Retail Federation (NRF), noted “Even though everything is not rosy, consumers are looking ahead.”

In fact, in NRF’s 2010 Tax Returns Consumer Intentions and Actions Survey, 12.5% of people expecting a tax refund plan to make a major purchase such as a new television, furniture or a car - up from 11.0% last year.

What special promotions or creative marketing ideas will you implement to encourage consumers to open their purses at your store?