Consumers are spending more on necessities such as groceries (55% spending more), utilities (45%) and healthcare (43%), with these being the three categories in which the largest percentage of survey respondents have increased their spending compared to a year ago, according to Gallup.
Meanwhile, the bottom categories in terms of increased spending are retirement investments (17%), consumer electronics (18%) and travel (19%), suggesting, Gallup says, that “Americans continue to spend more on things they need, but not on things they want.”
In fact, of the bottom 6 categories in terms of net spending trends (where more respondents report decreasing than increasing spending), 5 are discretionary:
- leisure activities;
- clothing;
- consumer electronics;
- dining out; and
- travel
Interestingly, 32% of respondents report spending more on cable or satellite as opposed to 14% spending less. Frustration over pay-TV costs may be spurring cord-cutting, or at least, the drive towards à-la-carte pricing.