Most American adults have cut back on spending this year, according to a new report CNBC Morning Consult pollwhich also showed that consumers plan to stay frugal over the holidays.
A whopping 92% of adults have cut back on discretionary spending in the past six months, according to a survey of 4,403 U.S. adults last week.
Consumers were most shy when shopping for clothes and eating out at restaurants – 63% and 62%, respectively.
The news site’s survey also showed that consumers of all income levels are feeling pressured by the economy. While labor strikes in Hollywood and Detroit create new uncertainty, inflation rose a surprisingly strong 3.7% last month – still well above the Federal Reserve’s 2% target.
55 percent of low-income households making $50,000 or less a year told CNBC that their personal finances are suffering because of the state of the U.S. economy, while 61 percent of middle-income households making $50,000 to $100,000 -Earn dollars, feel the pressure.
Even among top earners with annual incomes of more than $100,000, 46% said they are feeling the impact of the economy on their finances.
More than three-quarters of respondents, 76%, plan to reduce spending on non-essential items over the next six months during retailers’ key holiday shopping season, while 62% said they plan to “sometimes” or “sometimes.” more frequently” in the coming months, CNBC noted.
Meanwhile, 56% of respondents surveyed said they are spending less on entertainment outside of the home, despite reports that recent summer spending has been big on blockbuster movies and concert tours, particularly Taylor Swift’s coveted “Eras Tour,” which is on the best Way is to accumulate a record. It was the highest-grossing tour of all time, grossing more than $1 billion.
According to CNBC, groceries saw the second largest budget cuts, with 54% of respondents saying they were spending less at the supermarket.
The results came just a week after the Bureau of Labor Statistics’ closely watched consumer price index showed food prices rose 0.2% for the third straight month in August, while the index for meat, poultry, fish and eggs rose 0. 8% rose.
The pork index rose 2.2%.
The CNBC poll also found that 53% of respondents will cut spending on leisure travel, while 50% will not invest in electronics anytime soon – a number that could spell bad news for Apple, which will abandon its “industry first” iPhone 15 on September 22nd for up to $899, depending on storage capacity.
The latest inflation figures represent a significant slowdown from last summer, when inflation hit its highest level in four decades at 9.1%.
However, it is still well above the Fed’s 2 percent target and represents an acceleration from the previous two months.
Inflation bottomed out at 3% in June and rose to 3.2% in July.
As Wall Street expected, rising gasoline prices were the main driver of August’s rise. They rose 10.6% last month, accounting for more than half of the increase, the data showed.
The national average for a gallon of gasoline was $3.88 on Tuesday, up about eight cents in a week, according to the American Automobile Association.
The most eye-popping prices were seen in some parts of California, where residents were charged more than $6 for gas in some parts of Los Angeles and up to $7 in other parts of the state.
At this time last year, a gallon of gasoline was 18 cents cheaper nationwide, AAA said.
And to make matters worse, there seems to be no relief in sight, at least not in the short term.
Chevron CEO Mike Wirth predicted oil prices would rise “close” to $100 a barrel.
“Supply is tightening, inventories are going down… trends suggest we’re on the right track, we’re getting closer (to $100 a barrel),” said Wirth, who leads the country’s second-largest energy producer , told Bloomberg TV on Monday.