Consumers Still Cautious on Discretionary Spending

New York, NY, February 7, 2008--The pullback in consumer spending at the end of last year has apparently continued into 2008, according to Discover Financial Services.

Discover's index declined to 86.1 in January from 90.5 in December, the fourth straight monthly decline.

According to Discover's survey, 49 percent said they will likely spend less on discretionary items in February, up five points from December.

The index also showed that almost 60 percent of consumers in the $75,000-plus income bracket plan to spend the same in February as in January.

Margo Georgiadis, executive vice president and chief marketing officer for Discover Financial Services, said discretionary spending remains under pressure and consumers need to spend more on basic household expenses.