The State of Consumer Spending: Inflation Impact Fueling Recession Fears Report

First Insight's third report in a series of inflation studies reveals how inflation continues to weigh on consumers. The U.S. economy has experienced some drastic shifts as businesses navigate supply chain challenges, 40-year high inflation, and recession threats. This report answers key questions about how consumer behavior has shifted from April to July amidst these economic disrupters.

In this report, you’ll learn from consumers:

• How price increases are impacting daily lives.
• How continued inflation is changing their spending behavior.
• Where consumers are cutting back and prioritizing spending.
• Where specifically consumers are cutting back in key areas: groceries, entertainment, travel, and apparel/footwear/accessories.
• How shoppers are allocating discretionary spending.
• Answers to key questions about recession fears.

• Nearly all consumers are concerned about the possibility of a recession with 3/4 believing the economy is or may already be in a recession.
• Rising food prices, food shortages, and availability of goods & services are the top three recessionary concerns for consumers.
• Gas, groceries, and dining out continue to be top categories consumers report being hit the hardest.
• Consumers continue to report changes in their shopping habits which include shopping more for deals and staying within a budget.
• High prices are causing a majority to save less.
• More consumers switching to store brands and private labels.
• Fewer consumers are cutting back and being impacted by vehicle costs.
• Consumers are significantly more impacted by household goods costs.
• An increase in ride-sharing and carpooling.

These key findings are some of the rich consumer insights you can use to inform your business decisions. Download the full report to better understand behavior shifts during economic uncertainty.