The Bloomberg Markets Live Pulse survey shows more than half of respondents predict U.S. consumer spending will stay steady or increase this year, with consumers expected to continue traveling, dining out and attending live events. However, close to half, or 45%, think consumer spending will drop.
Some analysts have raised concerns about growing credit card debt, and more than three-fourths of respondents expect consumer delinquencies and defaults to increase this year.
The survey showed American shoppers continue to seek bargains, and almost four out of five respondents predict consumer companies will turn to layoffs or other measures to boost profits so they can avoid raising prices.
Recent layoff announcements at consumer companies have cast a shadow on the economy, but many investors think dropping inflation will bring an increase in spending despite this. “We really haven’t seen any signs of the consumer slowing down,” said Brittany Quatrochi, an analyst at broker Edward Jones. “Inflation pressures have impacted a lot of consumers, but ultimately you still have a strong jobs market. They’re still going to feel comfortable and continue to spend.”
