Jim Woods

Holidays Won't Revive Consumers

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ChangeWave's latest consumer spending survey shows yet another giant downturn in U.S. consumer spending going forward.

So, if you thought October was bad for U.S. retailers, wait till you see what's in store for November.

The survey of 2,763 U.S. consumers, completed Nov. 3, focused on spending patterns for the next 90 days, including the holiday season.

Here's what we found:

Grim Outlook

Fifty-nine percent of respondents said they'll spend less money during the next 90 days -- seven points worse than previously. Only 10% said they'll spend more -- eight points worse than previously.

"These findings strongly support the thesis that fourth-quarter earnings will be far more painful than currently expected," said Tobin Smith, founder of ChangeWave Research and editor of ChangeWave Investing.

Why are consumers spending less?