U.S. Consumers Cutting Back on Spending, According to Survey
In a recent Morning Consult survey, it was found that U.S. consumers have reduced their spending this year and plan to continue doing so during the holiday season.
Current Spending Habits
According to the survey conducted by Morning Consult, 92% of adults have decreased their spending over the past six months. Consumers are being cautious and selective about where and when they spend their money due to factors such as high inflation and economic uncertainty.
The most common categories for spending cuts over the past six months were clothing and apparel (63%), restaurants and bars (62%), and entertainment outside the house (56%). Other categories that saw significant reductions in spending include groceries (54%), recreational travel and vacations (53%), and electronics (50%).
Holiday Shopping Season Outlook
The survey also revealed that 76% of U.S. adults plan to cut back on spending for non-essential items during the upcoming holiday shopping season. Additionally, 62% expect to cut back on essential items “sometimes” or “more often” over the next six months.
Impact on Different Socio-Economic Groups
Interestingly, the impact of the current economic situation varied among different socio-economic groups. While 55% of lower-income households earning $50,000 or less reported feeling the impact on their personal finances, 61% of middle-income households earning $50,000 to $100,000, and 46% of higher-income households making at least $100,000 also reported the same.
It is worth noting that higher-income households showed a significant improvement in sentiment compared to the previous survey. In June, 55% of higher-income consumers reported feeling a negative impact on their finances, but in September, this number decreased to 30%.
