As the scope of the economic crisis spread, more people realized that they were overextended financially. As a result, American consumers have responded quickly, altering their place in the economy, seemingly overnight. There are now far more “savers” than “spenders.”

Some see the rebirth of the frugal American consumer as a course correction away from past excesses. It is time to bring balance back to a system that is seriously out of focus.

Between September 2008 and April 2009, the average U.S. household slashed discretionary spending by almost 30%. Understandably, from a world perspective those figures are severe and there have been serious consequences.

At home, the automotive and housing markets have nearly dried up. In other countries, particular importers like China, Japan, and India, the trend has translated in to lower production rates and growing inventories of unsold merchandise. Economic recession, low exports numbers, and the shrinking of emerging markets may be just the beginning of even graver problems around the world.

Not only has the typical American taken a 0% savings rate at the start of 2008 and turned it into a 5% rates at the beginning of this one, there is good reason to suppose that the rate may reach 10% in the near future.

Consumer frugality in the United States is being defined by the change in spending habits of many Americans. More are buying staple products that absolutely necessary such as groceries, health care related items, cheap clothes, etc. Additionally, some are extending the life of the family car, eliminating unnecessary landline telephones or at least finding cheaper packages. As a whole, it appears that credit card usage is down. Few want to deal with late charges and revolving balances.

The big question is whether Americans will remain frugal consumers if it will go back to the way it was once the economic crisis fades. For some, this has become the new “normal.” It may be a readjustment that needed to happen on a national scale in order to bring things back into balance, but is something that definitely had to happen. A period of consuming less, saving more and reducing debt is under way.

How long it will last will largely depend upon the attitude of the consumer and the overall health of the marketplace.

Related posts:

1. Lower Consumer Spending May Reflect New Habits
2. Government and American Households Facing Similar Debt Problems
3. Debt Takes Its’ Toll Both Physically and Financially
4. Study: Happy People Save More, Have Less Debt
5. Economy Forcing Young Americans to Delay Life