Description

“Consumers are in for a rough time over the course of this year and early 2023. Inflation is at a 40-year peak, with economists not expecting to see it cool down back to the 2% target for the near future. Combined with sharply rising rates and imbalanced supply and demand scales due to ongoing geopolitical conflict, the threat of the US economy spiraling into a recession looms large.”
Amr Hamdi, Finance Analyst

Key issues covered in this Report:

  • Change in consumer finances within the past year

  • Sentiments toward consumers’ financial future

  • Change in consumer spending habits

  • How consumers plan to manage inflation

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Market context
        • Executive Summary

            • Top takeaways
              • Despite economic challenges, nearly half of consumers still believe they will be financially better off
                • Figure 1: Opinions on financial future, 2022
              • Travel remains a goal for 43% of consumers heading into summer
                • Figure 2: Future spending behaviors, 2022
                • Figure 3: Klarna travel email, 2022
                • Figure 4: Affirm and Vrbo partnership, 2022
              • Leisure activities, clothes the top two nonessential category consumers would cut back spending on
                • Figure 5: Changes consumers would make due to inflation, 2022
                • Figure 6: Capital One Shopping email, 2022
              • Market overview
                • Opportunities and challenges
                  • Stagflation: a plausible risk
                    • Building off the goodwill earned during the peak of the pandemic
                      • Key consumer insights
                        • Those feeling the inflation squeeze the hardest are the most pessimistic about their financial futures
                          • Figure 7: Opinions on financial future, by income, 2022
                          • Figure 8: Inflation and wage growth, 2019-22
                      • State of the Economy

                        • Economic overview
                          • Figure 9: Key economic indicators, 2022
                        • Unemployment remained steady at 3.6% for the fourth consecutive month
                          • Figure 10: Unemployment and underemployment, 2007-22
                        • Consumer sentiment plunged to a record low of 50
                          • Figure 11: Consumer Sentiment Index, 2007-22
                        • The Consumer Price Index surged to 9.1% for the 12 months ending in June – A 40-year high
                          • Figure 12: Consumer Price Index change from previous period, 2007-22
                        • DPI dropped by 3.35% for the 12 months ending May
                          • Figure 13: Disposable Personal Income change from previous period, 2007-22
                        • Personal saving rate hitting its lowest rate since September 2008
                          • Figure 14: Personal Saving Rate, seasonally adjusted, 2007-22
                      • Consumers and the Economic Outlook – Fast Facts

                        • Change in Financial Situation

                          • Consumers are slightly worse off than they were back in November 2021
                            • Figure 15: Change in financial situation in the past 12 months, 2022
                          • Retired adults saw the largest decline in their financial situations between November and May
                            • Figure 16: Change in financial situation in the past 12 months, by employment status, 2021 and 2022
                        • Financial Situation Recovery

                          • A quarter expect to financially recover in less than a year
                            • Figure 17: Expectations for financial recovery, by financial situation, 2022
                        • Past Spending Behaviors

                          • Travel spend saw an expected decline going into an off-peak season
                            • Figure 18: Past spending behaviors, 2022
                          • Higher-income households added to their savings the most in the past three months
                            • Figure 19: Top three past spending behaviors, by income level, 2022
                        • Changes Consumers Would Make Due to Inflation

                          • Slashing spending on dining out and clothes are the top two ways consumers plan on stretching their dollars amid rising inflation
                            • Figure 20: Changes consumers would make due to inflation, 2022
                          • Financially healthy households the least likely to compromise amid inflation surge
                            • Figure 21: Changes consumers would make due to inflation, by financial situation, 2022
                        • Appendix – Data Sources and Abbreviations

                          • Data sources
                            • Consumer survey data
                              • Marketing creative
                                • Abbreviations and terms
                                  • Abbreviations

                                  About the report

                                  This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                  Market

                                  Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                  Consumer

                                  Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                  Brand/Company

                                  Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                  Data

                                  Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

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