Signs of the Credit Crunch's Impact on Consumers

The financial news from the past few months has been quite scary. Stock market taking big dives, mortgage foreclosures on the rise, housing prices on the decline. The direct consumer impact of these shift is now starting to surface in two key measures: eating out and holiday shopping.

First, a recent survey revealed that 54% of Americans are planning to eat out at restaurants less over the next three months. 63% of those with incomes under $25,000 said they would eat out less compared to 35% of those with incomes over $50,000. And 40% acknowledged that they are already dining out less now than 6 months ago.

"Volatile stock markets, declining home values, higher energy costs and overall concern about the economy are reducing Americans' appetite for dining out," said RBC Capital Markets equity analyst Larry Miller.

Retailers are also predicting a slower holiday shopping season this year. The National Association of Retailers cited "economic concerns" in announcing slower that usual growth in holiday spending. They expect a 4% increase over last year, down from an average 4.8% annual growth.

"Retailers are in for a somewhat challenging holiday season as consumers are faced with numerous economic obstacles," said NRF Chief Economist Rosalind Wells. "With the weak housing market and current credit crunch, consumers will be forced to be more prudent with their holiday spending."

Our team of personal finance experts have already spoken with several reporters about the "economic grinch" looming over this year's holiday season. This "belt-tightening" topic really seems to have legs for the next few months.

What about you? Are you cutting back on restaurants and shopping sprees? Share your feedback in the comments section below.

Emily Davidson – Credit.com's Communication Director and former TransUnion credit expert. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com moderator.