Consumers await Obama plan before spending

By Brad Dorfman

CHICAGO (Reuters) - U.S. consumers plan to avoid nonessential purchases in the first quarter, but many expect an economic stimulus plan proposed by President-elect Barack Obama to eventually get them to start shopping, according to survey released on Tuesday.

More than 69 percent of consumers surveyed by America's Research Group said they do not plan to make any discretionary purchases in the first three months of 2009. The survey included questions asked on behalf of Reuters.

While consumers typically cut back on such spending after the holidays, that number is usually close to 55 percent, said Britt Beemer, founder and CEO of America's Research Group.

"I think it's job worries and not wanting to spend the money," Beemer said in an interview.

More than 32 percent of the 1,000 people who answered the January 9-11 survey said fear of losing their job was causing them to spend less, representing one of the highest levels of job insecurity seen in recent years, Beemer said.

The Labour Department said on Friday that U.S. employers cut payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years.

Many consumers seem to be waiting for help from the Obama stimulus plan, with nearly 56 percent of respondents saying they expect it to motivate them to shop.

Obama last week urged Congress to pass a massive stimulus plan, but gave few details about a package of tax cuts and public works spending likely to cost $800 billion or more.