Americans' consumption is downgrading, but two major categories are not affected!

Recently, global management consulting firm McKinsey released its latest consumer pulse research report , with more than 4,000 American adults participating in the survey.

The current inflation rate in the United States is at its highest level in recent decades, and Americans' consumption behavior and savings habits have also changed as a result.

According to McKinsey research, U.S. consumer confidence in the economy has fallen to a new low this summer. At the same time, American households are saving more, while the amount of daily consumption varies by age, income level and product type.

As inflation intensifies and prices continue to rise, 74% of American consumers say they are shopping less, and 50% of them believe their spending has dropped significantly.

60 % of consumers have reduced the amount of purchases, and 44% have decided to delay purchases. It is important to note that low-income consumer groups have reduced their spending on footwear, groceries, home furnishings, and clothing .

Compared with before the epidemic, American consumers now save more, and the amount of valuables such as cash in American households is twice that before the epidemic. In the first quarter of 2022 , middle- and high-income consumers in the United States continued to increase their savings.

Although most consumers are concerned about the U.S. economic outlook , some are continuing to spend .

About 75% of consumers are skeptical about inflation and these consumers are not curbing their spending, especially on necessities .

High-income millennials said their daily consumption is not affected by inflation at all, and they plan to spend more in almost all categories. Meanwhile, middle- and low-income groups plan to spend less on non-essential items .

As the overall consumption level of American consumers declines, some people are starting to use their savings for consumption. Although spending on individual categories has begun to decline, according to McKinsey research, Americans' willingness to consume is currently much higher than at the beginning of the epidemic.

The growth rate of categories that saw a surge in sales at the beginning of the epidemic has begun to slow down, but individual categories are maintaining double-digit growth. For example, the demand for cosmetics and pet products has been very high. Among them, the sales of cosmetics increased by 16%, and the sales of pet products increased by 11%.

It is clear that inflation is having an impact on overall consumer spending in the U.S. In the face of these ongoing unfavorable factors , sellers must adjust their operating strategies in a timely manner and deploy cost-effective products.

Consumption downgrade

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