National Restaurant Association reports that majority of American consumers are still worried about the economy and holds back on spending, but there are signs showing that this mindset will change in 2015.
The study is based on analysis consumers's assessment when it comes to their personal economies trended sideways in recent years. Six in 10 adults express that their household finances are in between being fair or poor condition, which doesn't change since 2010 when the economy is on its early stages of recovery.
Chief economist for the Association and author of the report, Bruce Grindy, said, "While it's not surprising to see that consumers remain uncertain about the economy and cautious in their spending habits, the magnitude of the impact and the fact that it cuts across all demographic groups demonstrate the degree to which the Great Recession impacted the psyche of the American consumer."
"Even a majority of individuals in households with annual income above $100,000 report that they are holding back on spending in some fashion," said Grindy.
Analysis found that more than four out of 10 adults worry more about their household financial situation and how they can save enough for their retirement as well as how to keep up with their bills.
Personal economy remains mixed, but consumers are still optimistic that their condition will improve in the coming year. There are 34 percent of the adults who believed that their financial situation will improve by 2015 while there are eight percent will expect for the worse condition.
"On the positive side, the survey suggests that this recession mindset is not a permanent state for consumers, and they will continue to come out of their shell as their personal finances improve," said Grindy.
An improving financial situation will boost consumers general ability to spend, and the survey also recommends that restaurants will likely be beneficiaries of increased spending.
Grindy said, "It's clear that American consumers haven't abandoned restaurants, but rather are choosing their visits more carefully until their financial situation improves."
"Given the positive underlying economic fundamentals as well as elevated levels of pent-up demand among consumers, the stage is set for an improving business environment for restaurants in 2015," said Grindy.
The analysis was conducted on October 31 - November 3, 2014 through phone interview with 1,012 adults for the National Restaurant Association by ORC International.
