Survey: Price Hikes Cut Spending

New York City As a two-thirds majority of Americans brace for recession by cutting spending, an ominous forecast projects that price increases of 15% to 20% for consumer goods will halt spending in key product categories, according to a survey called "The Culture of the Recession," conducted for trend-forecasting consultant company Faith Popcorn's BrainReserve.

Of the 1,011 adult men and women surveyed (between May 29 and June 6), 84% said they have already modified their shopping habits, making fewer trips and less stops and sharply decreasing spending from food purchases to luxuries. Consumers reported that a 5% price increase triggers spending cutbacks across categories; while dramatic cuts, of up to 50% in non-essential spending, occurs at 10% price increases.