Consumers are dropping gym memberships and carpooling more as they fret over inflationary prices and fears of a recession, according to the latest research from First Insight.
The survey revealed that 62 percent of shoppers polled said they “believe the U.S. is currently in a recession, with a further 17 percent unsure.” And according to the authors of the report titled “The State of Consumer Spending: Inflation Fueling Recession Fears,” rising food prices “are the biggest recessionary concern for 68 percent of consumers, with nearly half (48 percent) also concerned about food shortages.”
The research was conducted in July. Last week, the Labor Department noted that inflation was up for the year but had flattened out month-to-month. First Insight said in a statement that its report “reveals some profound changes in consumer sentiment and behavior in just three months since First Insight’s April inflation survey was conducted.”
The company said consumer confidence had dropped lower since April, “with now 80 percent of consumers saying they have less confidence to spend, versus 74 percent in April.” And 28 percent of respondents said they are saving less, with 18 percent noting that they are “tapping into existing savings to pay for higher cost of living expenses.”