How Recession News has Impacted Consumer Spending [Data]
By ttaylor@hubspot.com (Tristen Taylor)
If you’ve watched the news recently, it seems that the possibility of a recession has captured everyone’s attention.
Americans have already seen signs like the inflation of rent, gas prices, groceries, and other necessities that pre-existing wages can’t meet. But, still, some experts say that we could still avert a recession – and if we don’t – a recession might not last as long as 2008’s.
With all these changes and news bites in mind, business decision-makers might wonder how their potential customers are reacting. And, if their spending habits could be changing in the near future as a result?
While we don’t know if we’ll head into a recession, this post aims to help brands and marketers prepare to continue to meet consumers where they are – even in uncertain times.
To give readers insight on how spending behaviors are or could be shifting, we surveyed more than 200 U.S. consumers across all age groups once in the summer of 2022 and again the following winter.
Before we dive in, we’ll briefly explain the concept of a recession:
Recessions are a normal part of the business cycle and can be induced by global economic shocks, changes in consumer confidence, and other large-scale economic changes.
But this year, in particular, there are a select few factors that have spurred concern about a potential recession, although one still hasn’t been declared or confirmed.
For more on the cause of recessions and why some are concerned about them happening in the near future, check out this helpful post from our partners at The Hustle.
Are We in a Recession?
According to multiple sources, including Forbes, we are not currently in a recession.
“The current economic indicators of a recession have yet to appear,” one Forbes article said.
Forbes went on to say there is still concern that a recession is expected in 2023. While we may not be in a recession right now, many consumers are considering changing their spending habits just in case.
How Consumer Spending Habits Could be Changing Today [Data]
1. How has the news of a potential US recession impacted your spending habits?
When we asked this question in the summer of 2022, we found that most respondents (30%) were purchasing less and spending money more concisely than they were in previous months (28%).
When we posed the same question again the following winter, we found that 30% of respondents said they were making very few purchases because of the potential recession, and 24% said they are spending money more conscientiously than they have in previous months.
We also noticed that the number of respondents who said news of a potential recession might impact their spending rose from 13% to 20% between summer and winter. The number of respondents who …read more
Source:: HubSpot Blog
