Aug 11, 2022
Most US consumers reluctant to spend due to inflation, but still buying office-wear
Aug 11, 2022
Around four out of five consumers (80 per cent) in the US say that they are less confident about spending, while 62 per cent of them believe that the county is currently experiencing a recession. Rising food prices are the biggest recessionary concern for 68 per cent of consumers.
The new First Insight Report titled ‘The State of Consumer Spending: Inflation Fuelling Recession Fears’ revealed some profound changes in consumer sentiment and behaviour in just three months since First Insight’s April inflation survey was conducted, according to a press release. Consumer confidence has dropped lower, with now 80 per cent of consumers saying they have less confidence to spend, versus 74 per cent in April.
Moreover, 28 percent say that they are saving less, with 18 per cent tapping into existing savings to pay for higher cost of living expenses. Dining out, household goods, healthcare, housing, and education costs all increased by double digits in terms of their impact on consumers’ daily lives.
“As inflation remains at the highest levels seen in the US since 1981, consumers continue to find different ways to afford things,” Greg Petro, CEO, First Insight was quoted saying in the media release. “Putting food on the table remains consumers’ top priority. One bright spot since our April survey is an increase in spending on work-related apparel now that more consumers are returning to in-office work.”
While dining out remains the top discretionary spending reduction for 54 per cent of consumers, up 13 per cent since April, 44 per cent more consumers say that they will cut back on gym memberships due to higher prices.
Half of all consumers surveyed also believe that high prices will remain for the next 6 to 18 months.
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