Worry-weary Americans are ready for a summer respite, a new study from AI data firm Resonate concludes. For the first time in several years, Resonate’s latest Consumer Trends Report recorded an 18% increase in the number of people reporting they have no worries for the next six months.
However, the data also shows a population that is still much more price-conscious and a lot less loyal to their favorite brands. In addition, a growing number of people (38.8%) continue to blame corporations for inflation.
While people seem to be adjusting to increased prices with spending and saving habits remaining mostly the same, they are at the same time finding ways to pull back, like seeking cheaper alternatives and switching stores or brands to save money.
Findings reflecting those trends include:
- Almost all people (97.5%) report taking action because of higher prices.
- Americans are more conservative in their spending with 24.6% of people reporting that they’ve cut back on or cut out all non-essential purchases.
- People are decreasing putting off buying cars and homes, but improvement projects and major household purchases are still on hold for 34.5% of respondents.
- Brand loyalty is down, and more people are looking for a deal above all.
- Over the last year, luxury spending has decreased 38% and consumers are going out 7% less.
- At the same time, 25% of people reported an increase of going into debt or dipping into savings to cover expenses.
- In the last 3 months, there’s been a 4% increase in consumers cutting some but not all essential expenses with 26% reporting they are cutting out all non-essential expenses.
- Back-to-school is also expected to take slight hit with 14.2% of respondents indicating they will cut back this year and look to use coupons and shop sales; clothing being the most important to spend money on for 70% of people.
“Our data confirms what many brands suspected: brand loyalty is down, and cost is king,” said Bryan Gernert, CEO of Resonate. “While we are seeing people adjust to rising prices and price volatility, they are increasingly looking to alternate brands and stores to help offset those increases.”
Click here for more from the survey.