US Consumers Plan to Cut Spending on Black Friday Amid Economic Fears
As Americans prepare for the holiday shopping season, a new survey reveals that consumers are scaling back their spending plans. Deloitte's latest survey shows that shoppers plan to spend 4% less this year than last, citing higher costs of living and increasing fears about the economy.
The reversal comes after previous surveys had predicted that consumers would spend more during the post-Thanksgiving weekend. However, with inflation rates rising and consumer confidence at an all-time low, shoppers are becoming increasingly cautious with their finances.
The impact is expected to be felt across both ends of the income spectrum. Those earning less than $50,000 a year will cut their spending by 12%, while those making more than $200,000 a year will reduce their expenditure by 18%.
"This is a sign that consumers are becoming more mindful of their budgets and are looking for ways to save," said Natalie Martini, Deloitte's vice chair and US retail and consumer products leader. "While we expect shoppers to plan to pull back on spending, we also anticipate strong participation throughout the holiday week."
The survey was conducted among 1,200 consumers across the US between October 15th and 23rd. Shoppers are feeling increasingly fearful about their personal finances, with a record-low level of consumer confidence reported in November.
Concerns about affordability and jobs have been top of mind for voters in recent elections, fueling Democratic wins in several key states. President Trump has attempted to address rising food costs by eliminating tariffs on food imports.
However, despite these efforts, consumers remain worried about their financial stability. The University of Michigan's consumer sentiment survey found that 69% of respondents expect unemployment to increase over the next year, twice the percentage from a year ago.
Retail earnings reports have also pointed to troubling consumer trends. Discount retailers like Walmart and Gap have reported strong results as shoppers seek bargains on core items. However, lower-income families are under greater financial strain, with many turning to financing options to make ends meet.
Buy now, pay later services, such as Klarna and Afterpay, are becoming increasingly popular among younger consumers, who plan to use these apps for 39% of their Black Friday spending. While these services offer a convenient way to spread out purchases over time, some worry that they can entice people to spend more than they can afford and lead to debt.
As Americans prepare for the holiday shopping season, a new survey reveals that consumers are scaling back their spending plans. Deloitte's latest survey shows that shoppers plan to spend 4% less this year than last, citing higher costs of living and increasing fears about the economy.
The reversal comes after previous surveys had predicted that consumers would spend more during the post-Thanksgiving weekend. However, with inflation rates rising and consumer confidence at an all-time low, shoppers are becoming increasingly cautious with their finances.
The impact is expected to be felt across both ends of the income spectrum. Those earning less than $50,000 a year will cut their spending by 12%, while those making more than $200,000 a year will reduce their expenditure by 18%.
"This is a sign that consumers are becoming more mindful of their budgets and are looking for ways to save," said Natalie Martini, Deloitte's vice chair and US retail and consumer products leader. "While we expect shoppers to plan to pull back on spending, we also anticipate strong participation throughout the holiday week."
The survey was conducted among 1,200 consumers across the US between October 15th and 23rd. Shoppers are feeling increasingly fearful about their personal finances, with a record-low level of consumer confidence reported in November.
Concerns about affordability and jobs have been top of mind for voters in recent elections, fueling Democratic wins in several key states. President Trump has attempted to address rising food costs by eliminating tariffs on food imports.
However, despite these efforts, consumers remain worried about their financial stability. The University of Michigan's consumer sentiment survey found that 69% of respondents expect unemployment to increase over the next year, twice the percentage from a year ago.
Retail earnings reports have also pointed to troubling consumer trends. Discount retailers like Walmart and Gap have reported strong results as shoppers seek bargains on core items. However, lower-income families are under greater financial strain, with many turning to financing options to make ends meet.
Buy now, pay later services, such as Klarna and Afterpay, are becoming increasingly popular among younger consumers, who plan to use these apps for 39% of their Black Friday spending. While these services offer a convenient way to spread out purchases over time, some worry that they can entice people to spend more than they can afford and lead to debt.
I'm reading this survey saying US consumers are planning to cut their Black Friday spending by 4% this year... yeah right 
. Deloitte's Natalie Martini says it's because of higher costs of living, inflation rates, and low consumer confidence. Got any proof? Where's the data on that? 
This seems way too convenient for retailers. I'd love to see some sources backing up these claims.
It's not just the cost of living that's a concern; it's the availability of affordable options. What about policies addressing income inequality?
I need some solid analysis on this before I start shopping online during Black Friday 
I'm only seeing this now lol... so people are cutting back on spending because of economic fears? That's kinda what happened last year too 
. But seriously, it's not all doom and gloom. I think it's a good thing that people are being more mindful of their budgets. Maybe we can learn to live with less and find ways to save without sacrificing our happiness. 
. I'm not sure if it's a good thing or a bad thing... either way, we need to be careful about getting into debt 
.
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meanwhile, in america, people are worried about their finances and wanting to cut spending on black friday... kinda makes you think about priorities, right? what's most important - saving up for christmas gifts or storing away nuts for the winter? 
️ like, shouldnt we be prioritizing our mental health and happiness over just saving a few bucks? 
they're just delaying the inevitable... we gotta take responsibility for our own spending habits and not rely on these apps to bail us out 
IT'S LIKE, I GET IT, ECONOMIC FEAR IS REAL AND EVERYONE WANTS TO BE CAUTIOUS WITH THEIR BUDGETS... BUT AT THE SAME TIME, I FEEL LIKE SOME PEOPLE WILL JUST END UP MISSING OUT ON GOOD DEALS AND SALES! 
IT'S LIKE, YES, IT MIGHT BE CONVENIENT, BUT IT CAN ALSO LEAD TO DEBT AND FINANCIAL TRAPS! 
I just read this survey about ppl cutting back on spending for Black Friday and it's def real 
. I mean, people are just so worried about their finances right now. Like, who can blame them? Inflation's on the rise and jobs are uncertain... 
. I get that some people might just wanna avoid the crowds and all that jazz. Plus, those buy now, pay later services? More like "buy now, worry about it later" if you ask me 
. I mean, they can be convenient or whatever, but let's not forget, those are basically loans with interest... 
they're not stupid, inflation is real, and jobs aren't as secure as everyone thought 
about their finances. But, on the other hand, isn't it also a good thing that consumers are being more mindful of their budgets? 
The economy is on everyone's mind, and it's causing them to cut back on Black Friday shopping 
Those who earn less might be the hardest hit, sadly 
maybe we can even find joy in giving gifts instead of buying 'em? 
hope ppl start makin more conscious choices about their spending 
. It's not just lower-income families that are feeling the pinch, though - even people with more disposable income are cutting back on spending 
. Maybe it's time to rethink our whole consumption culture and focus on saving up for what really matters 
. The fact that 39% of younger folks plan to use these apps for a big chunk of their spending is concerning 
.