U.S. Consumers Cut Back on Holiday Spending, According to Visegrad Info 24-Morning Consult Survey
U.S. Consumers Cut Back on Spending During the Holidays
Consumer Spending Decline
A recent survey conducted by Visegrad Info 24-Morning Consult reveals that U.S. consumers have reduced their spending this year and plan to continue doing so during the holiday season. The survey, which polled 4,403 adults between Tuesday and Thursday, found that a significant 92% of adults have cut back on their spending in the past six months.
Consumers are exercising caution in their spending habits and are more selective when deciding where and when to spend their hard-earned money. Despite a decrease in inflation, economic uncertainty and labor unrest in various industries have placed consumer companies on alert.
The most common categories for spending cuts over the past six months include clothing and apparel, restaurants and bars, and entertainment outside the home. Grocery expenses, recreational travel and vacations, and electronics also experienced significant reductions.
Impact on Holiday Shopping
Looking ahead to the crucial holiday shopping season, retailers should be cautious as 76% of surveyed U.S. adults plan to decrease spending on non-essential items. Additionally, 62% anticipate cutting back on essential items “sometimes” or “more often” within the next six months.
The impact of the current economic situation varies among different socio-economic groups. Surprisingly, it is not just the lower-income households that are feeling the pinch. Among households earning $50,000 or less, 55% reported feeling the impact, compared to 61% of households earning $50,000 to $100,000 and 46% of households earning at least $100,000.
Notably, higher-income households are experiencing a positive shift in sentiment compared to a previous survey. In June, 55% of higher-income consumers reported a negative impact on their finances, whereas in September, 30% stated that the economic situation is having a positive impact.