According to a recent survey conducted by CNBC and Morning Consult, the vast majority (92%) of U.S. adults have reduced their spending over the past six months. This cautious approach to spending is expected to continue into the holiday season, as 76% of respondents plan to cut back on spending for non-essential items.
The survey, which polled 4,403 U.S. adults, revealed that consumers are becoming more discerning about where and when they spend their money. Despite a decrease in inflation, broader economic uncertainty and labor unrest have caused consumers to be cautious with their finances.
Clothing and apparel, restaurants and bars, and entertainment outside of the home were the most common categories for spending cuts over the past six months. Grocery shopping, recreational travel and vacations, and electronics were also areas where consumers reduced their spending.
Looking ahead, the survey found that 76% of adults plan to cut back on spending for non-essential items during the holiday season. Additionally, 62% of respondents expect to cut back on essential items “sometimes” or “more often” over the next six months.
Interestingly, the survey also revealed that higher-income households are feeling more positive about the economy. In June, 55% of higher-income consumers reported feeling a negative impact on their finances, whereas in September, only 30% stated the same. This indicates a significant improvement in sentiment for higher-income households, as they are beginning to view the economic situation more favorably.
Overall, the survey suggests that U.S. consumers will continue to be cautious with their spending habits, especially during the holiday season. While lower-income households have been feeling the impact of the current economic situation, higher-income households are starting to experience a more positive outlook.
Sources:
– CNBC
– Morning Consult