According to the results of our Summer 2022 Consumer Pulse Survey of 1,000 consumers, 87 percent of survey respondents are concerned about inflation, with 43 percent being “extremely concerned.” Moreover, 72 percent of consumers are not only expecting a recession in the next 12 months, but many are also planning for it.
Shoppers are responding by shifting more of their spend from wants to needs and changing their purchasing habits. With inflation top of mind, are consumers being pushed to the edge?
Shifting spend from goods to services
Nearly 70 percent of consumers surveyed plan to change the amount of their discretionary spending due to inflation. Nearly half (49 percent) plan on spending less at restaurants and bars, 41 percent will reduce purchases of luxury goods, and 38 percent expect to lower the amount they spend on travel in the coming months.
Rising prices across retail categories
Nearly all (95 percent) of the consumers surveyed believe prices for products have increased over the last six months. They cite the highest increases have occurred in groceries (79 percent), restaurants (73 percent), and travel/vacations (66 percent).
Rising gas prices may also be driving consumer interest in switching to electric or hybrid vehicles, according to 48 percent of survey respondents. Approximately 35 percent of consumers are considering purchasing an electric or hybrid car within one to two years, while 28 percent plan to do so within a year.
Take a deeper dive into our findings. Read the full report.
The KPMG Consumer pulse survey series explores key, emerging themes around consumer behaviors, purchasing patterns and the economy. Each survey asks 1,000 U.S. consumers, representing all demographics, timely questions about upcoming purchases and economic conditions. We conduct the surveys to help our clients understand consumers, uncover the signals of permanent change and create basis for transforming their businesses to meet customers where they are.
Read the full report at https://advisory.kpmg.us/articles/2022/inflation-consumers-summer-2022-edition.html.