Survey Says U.S. Consumers Cutting Back on Nonessential Spending Amid Rising Costs and Inflation

(KNSI) — The holiday season is still a few months away, but new research shows most U.S. adults will be cutting back on their spending.

The study specifically looked at the last six months and how finances and spending habits have changed. It says special occasions such as vacations and holidays are taking a big hit as more than two-thirds of respondents say inflation has piled onto consumers’ financial concerns.

Sixty-seven percent of consumers surveyed have reduced their spending on nonessential items, including vacations and holidays. Forty percent say if they do go on vacation, they’re spending less, including 49 percent who are reducing travel expenses. Over a third will cut back on Christmas, but almost one-third are planning to spend the same as usual.

Those who are shopping are going online.

Forty-two percent of U.S. adults said they shop online at least once a week, and 39 percent have shopped online more frequently in the last six months. More than half say they expect to increase their online shopping habits due to convenience. Consumers say the downfall of shopping online is not being able to see the product followed by the price of having that item delivered.

The buy now, pay later trend has also taken off.

Of those surveyed, 64 percent of online shoppers in the U.S. say they have used that payment method more often in the last six months. Half say it’s because of the convenience, while almost half say it’s because of squeezed finances. Increased product costs also played in. Thirty-one percent say they use credit cards more, citing the same reasons. Sixty percent say they have not increased or decreased their credit card use.

Shoppers are also hunting for coupons, discounts, and deals.

Thirty-five percent say they’ve searched for an online coupon code, and 29 percent say they’ve gone to multiple sites to comparison shop. More than two-thirds say they want more help from retailers to deal with rising prices and inflation. Consumers say without it, almost half say they would stop online shopping if they needed to tighten their belts.

Just thirty-nine percent of U.S. adults say they’re financially comfortable. More than a third say they’re “getting by,” while a fourth say they’re struggling. Almost half say their finances got worse over the last year.

“We’ve seen how inflation has impacted our economy: consumers told us they are decreasing their spending across the board, most notably on special occasions, including holiday shopping and vacations,” said Ted Rogers, Chief Revenue Officer at Minneapolis-based global commerce company Digital River. “However, our research has shown the pace of online spending isn’t expected to slow down despite the squeeze on finances. Brands must ensure they have optimized their digital stores to make the shopping journey as transparent and friction-free as possible, making sure consumers aren’t surprised by any extra costs.”

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