In market research conducted by Ipsos, consumers in the United States reported that economic uncertainty is influencing their budgeting and purchasing, with many reducing discretionary spending and cooking at home more.
Consumers were not only more reluctant to make significant purchases but also to make necessary expenditures, with households earning under $100,000 more likely to spend reluctantly and to report that the current macroeconomic climate is too uncertain for them to set definitive budgets.
More specifically, 53% of consumers from households earning between $50,000 and $100,000 reported being worried about their ability to budget, compared with 43% of those earning under $50,000 and 47% of those earning more than $100,000.
Across the board, 67% of consumers reported that the perceived direction of the economy has affected their spending, with consumers from households earning $50,000 to $ 100,000 again the most concerned, at 71%.
The economic indicators that consumers consider when thinking about where their own finances are headed are led by the gross domestic product, mortgage rates and the unemployment rate.
Regarding spending, 41% of consumers in households earning between $50,000 and $100,000 reported postponing or skipping major-ticket purchases, such as appliances; 35% of those in households earning less than $50,000 and 32% of those earning more than $100,000 reported the same. At the same time, 78% of consumers from households earning less than $50,000, 75% of those earning between $50,000 to $100,000 and 60% of those spending more than $100,000 said they’re spending more on food to cook at home and less on experiences such as travel and dining out.
As they worry about finances, 45% of consumers from households earning less than $50,000, 41% from households earning between $50,000 and $100,000, and 34% from households earning more than $100,000 reported that they’ve put off needed home or car repairs to save money.
