NEW YORK, July 13, 2010 — In a mid-year financial check up, the American Express Spending & Saving Tracker found that most Americans are behind on their 2010 savings goals.  For the 51% of consumers who say they are no longer on track, the key reasons cited were:

• Increase in cost of non-discretionary bills such as utilities, groceries and auto (58%)

• Unanticipated emergencies (30%)

• Difficulty balancing wants versus needs (20%)

• Buying on impulse (20%)

As of the end of June 2010, survey respondents reported that, on average, they have reached just 25% of their savings goal for the year.  Respondents have also adjusted their savings objectives:

At the beginning of the year consumers said they would try to save an average of $14,000; they now say $12,000.

The AmEx study also found that 75% of Americans say that their debt has not increased over the past six months.  More than a third (38%) report that their debt has actually decreased.

While consumers may be focused on keeping their debt at bay, more than one-quarter (26%) of the general population acknowledge that summer weather specifically encourages more spontaneous spending.

“It's encouraging to see that consumers are continuing to balance their spending intentions while remaining committed to maintaining manageable debt levels,” said Pamela Codispoti, American Express senior vice president and general manager, Consumer Card Products. “Consumers are taking a measured approach to their finances – loosening their purse strings for meaningful experiences such as dining out and traveling with friends and family, while keeping their eye on their financial goals for the year."

More Americans say they have been focused on paying down debt (46%) than saving (29%) this year. An impressive 75% of consumers say they have either incurred no more debt or decreased their debt over the last six months.  Those that say they have decreased debt include:

• The majority of affluents (52%)

• Almost half (46%) of young professionals

• More than a third (38%) of the general population

While consumers have warmed to debt reduction, they also expect rising summer temperatures to spur some additional spending. Among young professionals, 43% agree that summer weather encourages more spontaneous spending, as do 26% of the general population and 25% of the affluents. The top areas consumers expect to spend more on include:

• Summer outings (63%)

• More dinners out (53%)

• Summer wear and accessories (44%)

Young professionals will be especially apt to spend more on happy hours with friends (44% versus 32% of general population) and on sporting events (39% versus 25% of the general population).

The overwhelming majority of consumers 91% have avoid making purchases they now regret.  As many as 20% of  consumers say they purchased something over the past 30 days that they would not have felt comfortable buying six months ago. 

Sixty-four percent of Americans say they expect to spend more (16%) or the same (49%) over the next six months compared to the past six months.  Of those consumers who anticipate spending more over the next six months, they plan to spend more in the following categories:

• Groceries (83%)

• Dining out (59%)

• Entertainment (59%)

• Electronics (49%)

• Personal grooming, such as manicures, hair styling, cosmetics (47%)

• Travel (42%)

• Accessories (41%)

• Clothing for self and family/others (35% each)

• Home improvement/repairs (35%)

• Tuition/education (27%)

Of those who expect to spend less in the next six months, they will do so to:

• Save money (50%)

• Stick to their budget (44%)

• Reduce debt (33%)

Employment concerns were also reasons for reducing spending.  Eight percent of respondent were reducing spending due to anxiety about a potential job loss, while 29% expected reduced income.

The American Express Spending & Saving Tracker research was completed online among a random sample of consumers aged 18+. The research sample of 2,004 adults surveyed the general U.S. population, as well as two sub-groups – the affluent (household income $100k+) and young professionals (under 30, college educated, household income $50k+). Interviewing was conducted by Echo Research between June 19 and June 22, 2010. Overall, the results have a margin of error of +/- 2.2 (or 4.3 among affluents and 4.4 among young professionals) percentage points at the 95 percent level of confidence.

For access to previous American Express Spending & Saving Tracker results, please visit www.americanexpress.com/aboutus.