TGM CONSUMER SENTIMENT SURVEY IN THE US 2024

What Changes are American Consumers Making to their Spending Habits?

Explore the evolving landscape of American consumer spending behavior over the next three months following an economic paradigm shift.

Amid concerns over increasing prices and financial security, American consumers are reevaluating their spending priorities. Heightened apprehensions regarding rising costs and financial stability are two predominant concerns that have led to a reconfigured economic landscape. This substantial transformation has not only enhanced consumer awareness but also spurred notable shifts in spending patterns. Our article delves into the heart of these dynamics, elucidating the influence of inflation on the attitudes and behaviors of consumers across the United States.

TGM Consumer Sentiment Survey in the US 2024 reveals 24% of American consumers rank ‘rising prices’ as their top 1 concern today, with predominantly females (25%) and individuals aged 65-75 expressing the highest level of apprehension, reaching 32%.

'Financial Security' Concern in the US 2024

TGM Consumer Sentiment Survey in the US 2024 reveals 15% of American consumers rank ‘financial security’ as their top 1 concern today, with predominantly males (16%) and individuals aged 55-64 expressing the highest level of apprehension, reaching 22%.

Rising Prices and Financial Security Impact Consumer Behavior

When prices rise, it becomes more challenging for individuals to maintain financial security. With 69% of American consumers concerned about the escalating costs of everyday items and 63% anticipating further increases in the next 12 months, adjustments to lifestyle have been made by 49% in the past three months. Moreover, a notable 48% of American consumers are now contemplating scaling back on future purchases of products and services as a direct consequence of these inflationary pressures.

The question is: Where are US consumers cutting their spending? What are their spending priorities in the next three months?

In the next three months, 47% of American consumers intend to reduce their future purchases of products/services; with 65% being males, 72% females, and 62% falling within the age groups of 45-54.

Anticipated Changes in Spending Habits

According to TGM Consumer Sentiment Survey in the US 2024, there is a notable projected decrease of 22% in consumer spending on ‘basic necessities & groceries’ by American consumers over the next three months. In contrast, an increase of 36% in expenditure is anticipated on ‘energy/utilities’ and 35% on ‘transportation and fuel’. These insights not only shed light on shifting consumer priorities in the US but also present opportunities for companies to adapt their strategies accordingly in the upcoming months.

Looking closely, gender disparities in spending priorities are apparent between male and female consumers. Specifically, 38% of males in the US intend to increase their spending on ‘energy/utilities’, while 20% aim to reduce their spending on ‘basic necessities & groceries’ over the next three months. In contrast, among females, 36% anticipate higher spending on ‘transportation and fuel’ over the next three months, while 24% plan to scale back on ‘basic necessities & groceries’.

24% of American females and 20% of American males both choose ‘basic necessities & groceries’ as their top cutback category over the next three months.

Top cutback category over the next 3 months

Age-specific patterns emerge, with age group 25-34 exhibiting the highest intention of spending on ‘basic necessities & groceries’ (39%), while age groups 45-54 and 55-64 express a focus on increased spending on ‘energy/utilities’ (39%) over the next three months. A notable finding also worth mentioning is the 25-34 age group who displayed a strong inclination to spend more on ‘housing costs (rent/mortgage)’ as well as ‘transportation and fuel’ at 37% and 41%, respectively. These findings present an opportunity for businesses to craft tailored strategies, securing themselves a steadfast position in the hearts and minds of their American consumers in the upcoming months.

Navigating Change and Seizing Opportunities

Understanding the shifts unfolding in the market is paramount for fostering growth. As a business, how can you proactively seize upon these opportunities to drive innovation and enhance your competitive edge? Here are some tips!

Long-Term value

Emphasize the long-term value and durability of your product or service to validate the price points and reassure consumers about the lasting advantage of their investment.
i.e. Showing superior craftsmanship and innovative features of your product or service to provide consumers peace of mind regarding its lasting benefits.

Transparency

Be transparent about pricing or any potential price increases, openly communicate with consumers about the reasons behind changes and your efforts to minimize their impact
i.e. “We've adjusted prices on certain fruits and vegetables due to weather-related challenges, but we're working to minimize the impact on your budget by negotiating with suppliers and improving supply chain efficiency.”

Customer support

Provide exceptional customer support to address concerns or questions about pricing, offering personalized assistance and guidance to help consumers make informed purchasing decisions.
i.e. Introduce a flexible payment plan for customers who are struggling to pay in the hope of easing their financial strain and make it more manageable.

Discover more insights on consumer sentiment in the US – Download the full report at TGM Consumer Sentiment Survey in the US 2024.

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