A survey of Texas residents by Citigroup Inc. (NYSE:C) confirms that consumers are still holding back on buying, and putting off spending on major products until the economy gets better.
Some of the findings of the survey were indicative of what is happening across the entire country, as people are not only holding back on major purchases like automobiles, with 57 percent saying they’re going to wait to make these types of buys, but they’re also working longer hours to be able to make it, while also tapping into their savings to pay their bills, with 38 percent saying that’s been their practice during the difficult economic times.
Interestingly, even though this signifies tough times going forward, Texans responding to the survey for Citigroup by Hart Research Associates, believed things will look better for Texas in the near term, in contrast to the rest of the country.
One dichotomy of the survey as it relates to consumers in Texas, is while the rising costs of gas and oil give them personal concern, at the same time the strong impact those rising prices have on Texas gives them some optimism concerning the state experiencing economic recovery before many other states.
Housing prices in Texas have been relatively stable in contrast to other states, also fueling the idea that most Texans believe their house prices will actually rise over the next year, or at minimum, stay where they’re at now. A surprising 58 percent said if they were to try to sell their homes now they would get more for them than when they bought them. On the other hand, 17 percent asserted they wouldn’t be able to get the money out of their home that they acquired it for.
Concerning business, as far as locally, about two-thirds of Texans said they think over the next 12 months the local economies will improve. That’s far better than the approximate 57 percent nationally who think that way. For their personal financial condition, survey respondents said at a 72 percent rate that they believe things will get better for them, while 65 percent believe that nationally. It seems the energy strength of Texas is driving that optimism higher than national averages.
Even with the optimism expressed by Texans, their practice is really the determining factor in what they really believe, and in truth, they are continuing to be hopeful while at the same time understanding they have to continue being frugal and spend and save on a different level than they had in the past.
The bottom line I think is that people are hopeful because they’re fatigued over the economic situation. At the same time, they continue to be realistic as to the inadequacy of the so-called recovery, and continue to practice personal finance as if it hasn’t arrived yet. That’s a wise thing to do.
