Mastering Holiday Spending in Times of Economic Uncertainty
A new CNBC-Morning Consult survey has found that 92% of adults have reduced their spending over the past six months, and plan to spend less through the holidays.
The Core Insight
Consumers remain cautious in their spending due to job insecurity and inflation. 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%), a pattern that held steady from our June survey. The next biggest categories for cuts were groceries (54%), recreational travel and vacations (53%), and electronics (50%.)
Looking ahead to the holiday shopping season, a warning for retailers: More than three-quarters of all U.S. adults surveyed (76%) plan to cut back on spending for non-essential items, and 62% expect to cut back on essential items “sometimes” or “more often” over the next six months, the survey found.
Just how acutely consumers reported feeling the impact of the current economic situation varied among socio-economic groups. And it wasn’t always those making the least that reported feeling most pinched.
Impact Across Socio-Economic Groups
More than half (55%) of households earning $50,000 or less (lower-income) said they’re feeling the impact of the economy on their personal finances, while 61% of households with $50,000 to $100,000 (middle-income) and 46% of households making at least $100,000 (higher-income) reported the same.
However, Higher-income households are in fact moving toward feeling that the economic situation is having a positive impact, the survey reports 30% in September, up from 21% in June.
Conclusion
In light of the economic uncertainty, a significant portion of Americans is adjusting their spending habits, especially as they approach the holiday season.
While these changes in consumer behavior pose challenges, they also offer opportunities for individuals to reevaluate their financial priorities and develop prudent spending habits.
By following these strategies and adapting to the current economic landscape, you can make the most of the holiday season while safeguarding your financial well-being.
Disclaimer
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