Jul 29, 2010, 12:01am

A new nationwide survey issued today by Citi, and conducted by Hart Research Associates, shows that there is a widening divide between men’s and women’s outlook for the economy and their own financial situations in the next twelve months. While optimism for the future was found to have declined overall, women’s outlook has held almost steady while men have turned increasingly sour since March.

The survey found that while current assessments of local economic conditions have improved slightly since March, up 3 points for men (24 percent) and 4 points for women (23 percent), only 50 percent of men believe that the business conditions where they live will get somewhat (46 percent) or much (4 percent) better in the next 12 months, compared with 56 percent of women who believe that business conditions will get somewhat (51 percent) or much (5 percent) better. For men this represents an eight-point decline from three months ago when 58 percent of men thought conditions would improve, but just a three-point decline for women from 59 percent in March.

In addition, men’s expectations for their own financial situation have declined while women’s expectations have held steady.

• Today, 62 percent of men are somewhat (47 percent) or very (15 percent) optimistic that their own financial situation will get better over the next twelve months, a four point decline since March.
• While the percentage of women who are somewhat (47 percent) or very (19 percent) optimistic remains unchanged at 66 percent since March, the percentage of women who are very optimistic has risen to 19 percent, up four points since March.

The survey found however, that women in particular believe that when it comes to economic recovery, America is in for a long haul.

• 65 percent of women and 60 percent of men believe we still have a ways to go before the economy hits bottom. Only 30 percent of women and 35 percent of men believe we have already hit bottom.
• 63 percent of women and 61 percent of men believe it will be at least two or three years, if not longer, before the economy stabilizes for their household. This includes nearly a third (31 percent) of women and a full quarter of men (25 percent) who believe it will take four or more years before the economy stabilizes for their household.

“The survey finding on women’s optimism is a bright spot in the midst of the economic downturn,” noted Lisa Caputo, Chairman and CEO of Citi’s Women & Co., a financial resource from Citi dedicated to helping women achieve their financial goals, and EVP, Chief Marketing Officer, Citi. “Many women are CFOs of their households, controlling the purse strings on purchases, so their positive near-term outlook on the economy may be a positive indicator for recovery. However, it’s clear they have tempered expectations that recovery and stability for their households may remain in the far distant future.”

Women’s Financial Situations Hold Steady Despite Growing Debt Concerns

The survey found that while men’s concerns with debt remained nearly unchanged since March (30 percent), the percentage of women who reported they are somewhat (21 percent) or very (15 percent) uncomfortable with their current level of debt rose 6 points (36 percent), and nearly 3 in 10 (28 percent) reported that at least one area of debt constitutes a major or unmanageable problem.

• Of those surveyed, health expenses were of greatest concern for women (12 percent) followed closely by credit cards (10 percent), mortgage debt (5 percent) and student loans (5 percent).
• Women in households making less than $50,000 annually and those earning $50,000 to $100,000 annually struggle the most with health expenses and credit card debt. Although nearly 1 in 10 (9 percent) middle income women (earning $50,000 to $100,000 annually) report credit card debt is a major problem or becoming unmanageable. Women earning more than $100,000 annually report struggling most with credit card debt (6 percent) and student loans (5 percent).

“Women make the majority of the household purchasing decisions so they may be dealing with the increased stress of managing debt for their households during the economic downturn,” noted Caputo. “It’s encouraging that they are steadfastly focused on building their financial security for themselves and their families.”

Women’s Top Financial Priorities: Building an Emergency Fund and Reducing Debt

As they navigate the economic downturn, women’s top priority for saving, across all age groups and income levels, is to have money for emergencies and unexpected needs (27 percent).

• 25 percent of women under 40 prioritized saving for education while 23 percent of women over 40 prioritized saving for retirement.
• Reducing debt was an issue across all ages with 15 percent of women under 40, and 13 percent of women over 40 responding it is a priority.
• At this time, only 2 percent of women under 40 and only 3 percent of women over 40 said they are saving to invest in financial markets, however, nearly one in five women (17 percent) expressed interest in learning more about saving for retirement and in making investments (15 percent).

Young Women More Positive About Financial Situation and Future

While 16 percent of women believe they are personally better off than a year ago, up three points since March, the survey found that young women (ages 18 to 39) are more upbeat about their personal financial situations and in their outlook for the future.

• Nearly twice as many young women (aged 18 to 39) say they are better off now than they were a year ago (23 percent) than women over 40 (12 percent).
• A full 61 percent of young women expect business conditions in their area to improve in the next 12 months, compared to 53 percent of women over 40.
• More than four in five (82 percent) young women are optimistic that their own financial situation will improve, whereas 59 of women over 40 feel the same.

“Women’s economic momentum is steadily building, and young women are well positioned to benefit,” Caputo added. “Women control 51 percent of U.S. wealth, make the vast majority of consumer spending decisions and are on the verge of outnumbering men in the U.S. workforce for the first time in U.S. history. Young women may be feeling that change is in the air.”

Citi conducted this nationwide survey as part of its ongoing effort to better understand changes in the needs of the consumers and communities the company serves.

Survey Methodology

Hart Research Associates conducted the telephone survey of 2,005 adults, including 1,070 women, nationally from June 22-29, 2010. The Random Digit Dialed (RDD) survey has an overall statistical margin of sampling error of plus or minus 2.2 percentage points. The survey also included a panel of respondents who use only a mobile telephone.

About Citi

Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.

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