Consumers frugality is here to stay - WREX.com – Rockford’s News Leader

Consumers frugality is here to stay

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By Whitney Allen

(WREX)

Frugal, that's what economist call consumers lately. They say this penny pinching behavior could outlive the recession. Even though people are starting to spend more a Rockford College economics professor says, it will be a long time to before we get back to where we were before things went south.

Fred Rezazadeh says, "People are going out to restaurants, spending more on entertainment, all signs showing the consumer confidence is growing but this doesn't mean that it will be like it was before the recession." Rezazadeh says, even though spending is up people are still tight fisted. He says, "This growth, is going to be cautious and frugal, from my view it's a good thing."

According to an AP survey the recession created a "new frugality" among consumers that will stay with us past these hard economic times. Michelle Finley says her family has found ways to cut corners. She says, "The small things maybe not buying new clothes going through the wardrobe and only keeping what you have.

So how long will the trend last? Rezazadeh says to see the future he always takes a look into the past. Rezazadeh says, "This is a great recession not depression there are similarities but also differences, you see now the consumer expenditure is growing fast compared to the great depression.

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