As economic conditions deteriorate, US consumers are increasing their short-term savings and paying off more of their debt, according to a new survey by First Command.

It shows that short-term savings for an average family rose by 29 per cent in the three months to September to reach $901.

At the same time payments on short-term debt were up eight per cent, from $938 in June to $1,010 last month.

Commenting on the findings, Scott Spiker, chief executive of First Command, said they show that consumers are "buttoning-down during tough economic times".

"Our research shows a significant downturn in consumer sentiment on feelings of financial security, optimism and being financially stretched on a month-to-month basis," he remarked.

The survey also shows that 54 per cent of consumers are concerned about the cost of everyday goods, while 40 per cent are worried about personal debt.

According to the Conference Board, consumer confidence fell in September to its lowest level since the organization's index began in 1967.

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