Tax Rebates Help, but U.S. Economic Situation Has Mixed Effect on Consumer Spending

Tax rebates will have an immediate impact on sales of high-definition TVs and personal computers this year, but economic concerns among consumers will limit the growth to more modest levels, according to Parks Associates’ Consumer Electronics Purchases: Quarterly Monitor.

According to the new study, 40% of consumers in U.S. Internet households will use the tax rebate to purchase consumer electronics products – with high-definition televisions and personal computers topping the list – but 42% cite concerns about the country’s economic conditions as a factor in their decision not to purchase consumer electronics products this year. Still, consumers indicate that they will limit spending in other areas before cutting home communication and entertainment services.

As a result, companies like Apple are in a good position to withstand an economic downturn. According to the study, purchase of portable music players will be the least impacted by economic concerns out of all major CE categories.

Consumer Electronics Purchases: Quarterly Monitor is a survey of U.S. Internet households conducted in April 2008. It examines likely consumer electronics purchase intentions, including those planned because of the tax rebate. It also provides data on the impact of the current U.S. economic situation on planned consumer electronic purchases.