A July survey reveals intriguing insights into current consumer behaviors, reflecting the economic climate’s impact on spending habits and lifestyle choices.
Consumer confidence in the economy has seen a slight uptick, with 37.5% of adults expressing confidence, a 1.9% increase from the previous month and a significant rise from 28.3% in July 2022. This increased confidence comes despite widespread awareness of price increases across various sectors due to the pandemic and inflation. However, the percentage of adults noticing these price hikes has decreased month over month.
In response to these price increases, consumers are adapting by shopping for sales more often, switching to store brands or generic products, and using coupons more frequently. This trend is particularly noticeable among Walmart and Target customers.
Despite the price increases, 35.7% of respondents reported a decrease in their standard of living, a slight improvement from the previous month’s 38.7%. Fluctuating gas prices have also influenced consumer behavior, with 32.7% of adults indicating they will drive less, and 19.1% spending less on groceries. However, 32.6% stated that these fluctuations had no significant impact on their spending.
Gas price fluctuations have also led to changes in shopping behaviors, with 31.7% of adults taking fewer shopping trips and 30.2% shopping closer to home. The number of those shopping for sales more often has decreased to 30.1% from 33.1% last month.
Interestingly, the need to be more practical and realistic in purchases has decreased since last month, with 41.8% of adults expressing this sentiment, down from 47.9%. Similarly, the focus on purchasing only what is needed has also decreased to 45.6% from 49.7% last month.
Looking ahead, the spending score, an indicator of future consumer spending, has slightly increased to 82.74 from 82.59 last month, suggesting a potential increase in future spending. Major purchase plans over the next six months have also seen a slight increase, particularly in home improvements and car purchases.
In terms of memberships, both Amazon Prime and Walmart Plus saw a slight decrease month over month. This month, 56.3% have Amazon Prime, down from 57.7% in June, and 17.2% have a Walmart Plus Membership, down from 18% in June.
