- American consumers are already cutting back on spending, according to a new CNBC survey.
- For many living paycheck to paycheck, this is not a surprise as inflation rises and Covid stimulus savings decline.
- However, the survey also shows that higher-income consumers are showing signs of financial stress and have begun cutting back on dining out, travel and vacations, and cars.
With as much as 60% of U.S. consumers living paycheck to paycheck, it’s not a surprise to see that the spending cutbacks have started. Even with a strong job market and wage gains, as well as Covid stimulus savings, pricing spikes in core spending categories including food, gas and shelter are leading more Americans to mind their pocketbooks closely.
A new survey from CNBC and Momentive finds rising concerns about inflation and the risk of recession, and Americans saying not only have started buying less but will be buying less across more categories if inflation persists. But these financial stress points are not limited to lower-income consumers. The survey finds American with incomes of at least $100,000 saying they’ve cut back on spending, or may soon do so, in numbers that are not far off the decisions being made by lower-income groups.