NRF: Tax Refunds Bode Well for Furniture

March 15, 2011  by in UnCategorized   

By Home Furnishings Business in economic news on March 16, 2011

Americans will spend more of their income tax refunds on big ticket items such as furniture this year, according to a National Retail Federation survey.

NRF's 2011 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch, indicates 13.2 percent of Americans will spend their refund on a big ticket item, up from 12.5 percent last year. 

More people will also put their refunds away for a rainy day (42.1 percent vs. 40.3 percent in 2010). 

"Despite the difficult unemployment situation across the country, Americans receiving a tax refund this year seem eager to plough this money back into the economy," said NRF President and CEO Matthew Shay. "With sales momentum continuing to build, NRF is becoming more bullish about the economic recovery."

While some will toss frugality out the window, there are still 41.9 percent of consumers who plan to pay down debt. Other ways consumers will use their refunds include vacation (11.9 percent), and everyday expenses (29.7 percent).

"Many Americans have spent the last few years paying down debt with their tax refunds, but for some, it's the perfect time to buy something nice for a change," said Phil Rist, executive vice president, strategic initiatives, BIGresearch. "Others are also looking to the future though, by putting their 'free money' in a savings account, with the recession serving as a perfect reminder of the need to be prepared."