Even as the economic recovery plods ahead, many American consumers are refusing to come along.
They're not spending freely — and they have no plans to.
Their behavior suggests that the Great Recession may have bred a new frugality that will endure well into the recovery. And because consumers fuel about 70 percent of the economy, their tightfisted habits means the rebound could stay unusually sluggish.
That's the picture that emerges from an Associated Press survey of leading economists and interviews with more than two dozen ordinary Americans. The new AP Economy Survey asked 44 leading economists whether the recession created a "new frugality" among consumers that will outlive the recession. Two-thirds said yes.
They had in mind people like Marjorie Feldman of suburban St. Louis, who retired three years ago as a systems analyst for a utility company. The stock investments in her retirement account have sunk 15 percent from 2007. The value of her home is down 20 percent.
"I had retired assuming I'd make money" off the investments, said Feldman, who's in her early 60s. "I just don't feel as confident in the economy, and I never will again. I won't spend money the way I used to."
Feldman's husband works full time in academia. She has a part-time job preparing tax returns at H&R Block. But her prime earning years are behind her.
"I don't think it will ever get back to where it was before," she said of her nest egg. "I won't spend money the way I used to."
Scott Hoyt, senior director of consumer economics at Moody's Economy.com, notes that Baby Boomers, in particular, enjoyed spending sprees for most of their adult lives as their assets steadily grew.
"But the recession changed that," Hoyt said. "Many have retirement and children's education looming. All of a sudden, they see their balance sheets decline in a way they've never seen before."
To be sure, many shoppers, especially the wealthy, are buying into the recovery. Partly on the strength of consumer spending, the economy emerged from recession last year and has been growing steadily, if moderately, since. Major retailers logged solid sales in March. Employers have begun to add jobs, including a net increase of 162,000 in March. The stock market has risen 70 percent from its low in March 2009.
Yet many who became penny-pinchers during the recession are in no mood to start shopping again with abandon for clothes, cars and home additions. They've discovered the peace of mind that comes with rebuilding savings, shopping more prudently and learning to live with less.
At their nerve-racked peak last year, Americans socked away 6.4 percent of their disposable income. That compared with less than 1 percent hit at one point during the pre-recession boom. The savings rate has since dropped to 3.1 percent. Yet few expect it to approach the near-zero savings rate that would signal high-octane spending has roared back.
Susan Wilson, 55, a freelance PR specialist in Scottsdale, Ariz., says her business is picking up. But her spending isn't. Wilson still feels burned by the recession, when she lost her home to foreclosure.
"Shame on me," she said. "I wasn't paying enough attention to my financial health. That will never happen again."
Wilson is renting now. She traded in her leased car for a used car she could buy outright. She's started growing her own vegetables and air-drying her laundry to save money and stay out of debt. She's looking to buy a home, but not one with an outsize mortgage.
"I'm looking for pretty much the smallest house I can live in," she said.
Interviews with ordinary Americans suggest a new frugality endures even though consumer spending has risen for five straight months and retail sales for three.
Frugality among consumers is outliving recession
Economy could be hobbled for a while by penny-pinchers
New frugality is likely to outlast the recession, experts say. Associated Press file photo