Survey: Lengthy Recovery Results In Pessimism

DAVID PITT

DES MOINES, Iowa (AP) — The stock market's moving up and some economists are declaring an end to the recession. So, why are people still so pessimistic?

A new national survey says the reality has sunk in that true financial recovery for most people won't come soon. As a result, consumers aren't very interested in spending money, they've concluded retirement is even further away and they're increasingly skeptical that Social Security will be there when they need it.

The survey by Sun Life Financial Inc. shows 77 percent of adults between 18 and 66 say they're cutting spending, that's a 10 percent increase from a similar survey completed earlier this year.

Of those cutting spending, nearly eight in ten are spending less on entertainment and eating out, and more than half have put off a home improvement project or buying a car.

What's more, the bad news for retailers is that 60 percent said they will spend less on holiday shopping.

"Americans are looking at all different aspects of their lives and trying to figure out how they can secure a financial future given the economic factors that they're living with," says Julie DiCarlo, a Sun Life Financial spokeswoman.