Consumers gain confidence but watch their pennies

While an index of consumer confidence rose in March, those surveyed still plan to be conservative about spending, according to a report released today from Discover Financial Services, a credit card issuer and payment services company based in Riverwoods, Ill. The Discover U.S. Spending Monitor, a monthly index based on a survey of 15,000 adults, rose 3.8 points to 79.5. The percentage of consumers who said they thought the economy was improving increased to 15% in March, from 8% in February. Participants weighing in with a negative outlook dropped to 61% in March, from 70% in February. March reflected the lowest percentage on this outlook since October 2007. Still, consumers plan to continue to curtail spending. In March, 28% of consumers said they expected to spend less, while 17% said they expected to spend more, the survey found. A full 54% said they intended to spend less on discretionary items, 52% said they planned to spend less on home improvements, and 51% said they planned to spend less on major purchases. Consumers are also concerned about debt, the report said. A full 52% said their finances were getting worse and nearly 57% said they were “somewhat to very concerned” about the debt they were carrying. When asked what they would do with extra money if they had it, 38% said they would pay down either mortgage or credit card debt, and 33% said they would save the money, the survey found. The survey, conducted by Asbury Park, N.J.-based independent-survey research firm Rasmussen Reports LLC, has been tracked monthly since May 2007.