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Consumers Remain Unsettled About the Economy December 09, 2010

Contact Info: Bradley Honan Senior Vice President, StrategyOne 212-704-8295 Bradley.Honan@strategyone.net http://www.strategyone.net

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Survey Methodology

• StrategyOne, a Daniel J. Edelman company, conducts weekly surveying around holiday shopping and related consumer attitudes and expectations

• StrategyOne surveyed 1,072 U.S. Consumers between November 22 and 23, 2010. • The overall margin of sampling error at the 95% level of confidence is = +/- 3.14% overall and larger for subgroups • Statistical weights were designed from the United States Census Bureau statistics.

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Key Insights & Conclusions

Despite recent positive economic news, most Americans are deeply concerned about the state of the economy: • 79% think the U.S. remains in a recession • Only 10% think the economy is excellent or good • Just 8% think the economy will be better next year

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Key Insights & Conclusions

This pessimism is influencing holiday shopping: • 39% of consumers are concerned enough about the economy that they are planning to spend less during the holidays vs. last year • 52% said they were uncertain about the future and would spend about the same as last year

• 36% thought spending a lot of money on gifts was in bad taste this year with so many out of work • 43% are worried about how the Irish financial crisis would affect the U.S.

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Key Insights & Conclusions

These findings contrast with reports suggesting economic improvement • The Consumer Confidence Index rose to its highest level since June • Consumer spending is up for the fourth month in a row • New unemployment claims are at a 2-year low • Consumers are saying “not so fast” on calling a recovery • Despite some good news, consumers are still uncertain about the future

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Consumer Worries About the Economy

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Consumers say recession continues I believe the U.S. economy is ‌?

No longer in a recession

In a recession

Question text: I believe the U.S. economy is ‌?

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Most Consumers Rate the Economy Poorly The rating I give the economy today is ‌. ?

Question text: The rating I give the economy today is ‌ ?

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Only Slight Improvement Likely, Consumers Say By this time next year, the U.S. economy will be …. ?

Question text: By this time next year, the U.S. economy will be … ?

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Consumer Worries Influence Spending Decisions Which of the following statements do you agree with more ‌? I am still very concerned about the economy, so I will spend less than last year

The recession is over, so I will spend more this year

I am uncertain about the economy, so I will spend about the same as last year

Question text: Which of the following statements do you agree with more ‌?

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Is Excessive Spending in Bad Taste? People who spend a lot of money this season on gifts are acting in bad taste because so many people are out of work. Do you ‌? Agree

Disagree

Question text: People who spend a lot of money this season on gifts are acting in bad taste because so many people are out of work. Do you ‌?

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Will Irish Crisis Influence U.S.? How much of an impact do you expect that the burst of the Irish housing bubble will have on the U.S. economy?

Question text: How much of an impact do you expect that the burst of the Irish housing bubble will have on the U.S. economy?

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Contact Info

If you have any questions, please contact: Bradley Honan

Senior Vice President, StrategyOne 212-704-8295 Bradley.Honan@strategyone.net

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Consumers Remain Unsettled About the Economy