Ahead of the Bell: Discover Index

Discover surveyed 14,000 adults about their spending habits. The March index declined to 85.1 from 86.4 the prior month and is down 11 points from six months ago.

Soaring energy prices and tighter credit have made people and businesses more cautious about how they spend their money. Investors have been watching the strength of consumer spending, which accounts for two-thirds of total economic activity.

According to Discover's index, just under half of those surveyed are cutting back on discretionary expenses, like dining out and going to the movies. Nearly 46 percent of those surveyed plan to spend less on home improvement or major personal purchases.

Margo Georgiadis, executive vice president and chief marketing officer for Discover Financial Services, said many consumers are cutting back to offset higher household expenses.

"With no relief in sight at the pump or grocery store, consumers are actively cutting back on discretionary expenses to help keep budgets in balance," Georgiadis said.

The index showed that consumers of all economic backgrounds, including those in the upper income bracket, are cutting back on discretionary spending. Around 42 percent of those surveyed in the upper income bracket plan to spend less next month on discretionary items a 4 point rise from the prior month.

The Discover Consumer Spending Confidence Monitor measures consumer spending intentions and opinions on the U.S. economy.