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ANALYST REPORT
U.S. Consumer
Spending Report
Consumers slashed discretionary spending
as inflation weighed down sentiment
APRIL 2022
© 2022 Morning Consult. All rights reserved.
ABOUT THIS REPORT
Morning Consult’s monthly U.S. Consumer Spending Report provides a detailed assessment of
purchasing patterns reported by consumers across a variety of categories of goods and services.
Businesses and investors rely on this report to understand emerging trends in consumer demand
and shopping patterns across demographics.
The report draws on Morning Consult Economic Intelligence, a high-frequency, global economic
dataset reflecting more than 19,000 daily economic surveys across the 44 largest global economies.
2
TABLE OF CONTENTS
4 March Spending Summary
14 Housing
23 Groceries & Restaurants
34 Transportation
43 Home Furnishings
50 Apparel & Personal Care
57 Telecommunications & Electronics
63 Methodology
3
SECTION 1 MARCH SPENDING SUMMARY
SUMMARY
U.S. consumers slashed Spending fell in March as rising inflation and Purchase intentions for used vehicles fell as driving
geopolitical uncertainty tanked consumer costs increased, and a declining share of
spending on discretionary sentiment. prospective home buyers will likely hold back
goods and services in Gas and food prices soared last month, and demand for furniture, appliances and home
consumers responded by cutting back on improvement supplies going forward.
March. Elevated inflation nonessential purchases. Affordability concerns for
Looking ahead, there remain hopeful signs for a
— acutely visible in sky- household expenses like groceries and housing
“soft landing” for the consumer.
payments escalated, affecting higher-income adults
high gas prices — elbowed as well as the most financially vulnerable.
Some of the most stressed areas of budgets,
including housing and vehicles, are seeing a
out purchases in Consumers are showing signs of shifting moderation in demand that could flow through to
nonessential categories that purchases from goods back to services. pricing. Gas prices have already declined from
Discretionary purchases’ share of wallet trended their March peak, coinciding with a modest
were competing for space lower to make space for the rising cost of recovery in consumer sentiment in early April.
in household budgets. household staples in recent months. The pullback Meanwhile, strong labor market gains continue to
in spending has been more pronounced for support spending.
physical products than for services, as consumers
increasingly revert to pre-pandemic trends.
5
SUMMARY
Housing Grocery & Restaurants Transportation
Rising interest rates and prices are beginning to Soaring prices and persistent shortages restrained U.S. adults cut back on driving, the car ownership
weigh on housing demand. Although price grocery purchases. Price-conscious consumers are rate declined slightly and prices and purchasing
expectations remain elevated, a growing share of avoiding online grocery orders, which often come intent for used vehicles slipped lower. Souring views
adults consider homebuying to be a bad with a delivery surcharge. Unlike most discretionary on driving did little to push consumers toward public
investment, and the share of adults planning to buy categories, restaurant spending increased last month, transit, however — spending plummeted as many
homes in the next 12 months fell to a series low. as the cost differential with dining in narrowed. preferred to walk or stay home.
Home Furnishings Apparel & Personal Care Telecommunications & Electronics
Consumers cut back on furniture and appliance Apparel and personal care categories contain a mix Telecommunications spending has been relatively
purchases as inflation soured perceptions of current of household essentials — like clothing and soap — stable, especially among older demographics, for
buying conditions. Still, furniture purchase intentions and discretionary goods and services, like jewelry whom a large share of spending on this category is
remain elevated, suggesting some demand may be and spa treatments. Spending on these categories tied to cable TV services. Although consumers are
deferred rather than lost altogether. Home declined slightly overall, driven by consumer groups showing signs of transferring more spending from
improvement projects, however, registered a that allocate relatively more of their spending to goods to services, purchasing intent for electronics
decline in purchasing intent. discretionary products and services. has increased from a year ago.
U.S. Spending Report | April 2022 6
Elevated inflation is discouraging nonessential spending
Percent change in spending among all U.S. adults from February 2022 to March 2022 Spending declined across most categories as inflation
concerns spurred increased price sensitivity among
consumers. Spending on gas continued to capture a
9% larger share of spending, as already-elevated prices
4% 4% 3% soared higher in March and car-reliant Americans had
2% little choice but to absorb the increase.
-1% -1% -1% -2% As essential products like gas and housing have grown
-2% -2% -3%
-4% more expensive, nonessential purchases have been
-8% forced to cede space in budgets. The biggest declines
-9% -10% -10%
in March were for discretionary categories like
-15% -15% recreation, alcohol, airfare and furniture.
-21% Lower-income adults — who tend to have a slimmer
savings buffer for absorbing increases in living costs
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Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 7
Housing, groceries and gas accounted for 52% of total spending in March
Reported average monthly spending in March by category, all U.S. adults $1,169
Total = $3,386
▼ $61 from February
$443
$159 $205
$102 $125 $137 $138 $149 $149
$50 $55 $65 $76 $78 $91 $91
$31 $37 $37
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Source: Morning Consult Economic Intelligence
Elevated inflation is impacting a wide range of spending categories, but three • Grocery prices are up 10% year over year, and supply chain disruptions
are top of mind for U.S. consumers and play a major role in shaping consumer continue to limit availability for certain items. Food spending makes up the
purchasing behavior — housing, grocery and gas: second largest living expense, and U.S. households’ ability to find and afford
• While housing prices haven’t risen quite as rapidly as some other groceries is critical to overall well-being.
categories, rents or mortgage payments are the single largest cost for most • Gas prices shot up in March, disrupting spending allocations as they
households each month, so even a small percentage increase in price can climbed. By the end of the month, however, fuel prices had begun to retreat,
result in a large increase in total expense. potentially signaling that the near-term peak energy price is in the rear view.
U.S. Spending Report | April 2022 8
Discretionary goods’ share of spending is shrinking faster than that of nonessential services
Rising energy costs are forcing many households to allocate a higher share Discretionary goods and services share of total spending*
of total spending to gas and utilities. As the Russia-Ukraine conflict
continued to roil energy markets, gas prices jumped 18% from February to Goods: Alcohol, apparel and furniture Services: Airfare, hotels and restaurants
March, capping off a 48% annual gain. While milder spring temperatures 8%
may provide some relief from heating costs, consumers who rely on
personal vehicles to commute to work and shop for food have little
alternative but to absorb higher prices. 7%
Gasoline & utilities’ share of total spending*
12%
*Total spending excludes personal care and recreation
6%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
11% ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
As spending on gas climbs, consumers have cut back on discretionary purchases.
10%
But the cuts have not been uniform across categories: As Americans grow more
*Total spending excludes personal care and recreation accustomed to living with the pandemic, consumers are expected to reallocate
9% spending away from goods and toward services. There is some evidence of this in
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar the milder reduction in discretionary services relative to goods. Alcohol, apparel
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22 and furniture’s combined share of total spending has fallen just over 1 percentage
point since June 2021, compared with a 0.7-point decline for travel and dining.
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 9
High-income adults and millennials are driving decline in discretionary spending
Adults across all income groups were more likely to reduce their share of Discretionary goods and services’ share of total spending*, by generation
budget allocated to discretionary goods than to cut back on discretionary 20%
Gen Z adults
services over the past 9 months. Despite their stronger financial situation, the 18%
highest earners posted the biggest decline in nonessential categories’ share of
16%
total spending. This group spends larger amounts on discretionary goods and Millennials
services overall, allowing for more “fat” to trim. 14%
12% Gen Xers
Net change (In percentage points) in discretionary categories’
share of total spending* since June 2021, by income 10% Baby boomers
*Total spending excludes personal care and recreation
Goods (alcohol, apparel and furniture) Services (airfare, hotels and restaurants) 8%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
-0.5%
-0.7% -0.6% Younger adults consistently spent more than older adults on categories like
travel, dining out and new clothes over the past 9 months. However, the
-1.0%
millennial generation reported a dramatic pullback in discretionary spending in
-1.2%
recent months. In March, this group registered a spike in financial vulnerability
-1.4%
concerns, with a growing share doubting their ability to afford housing and auto
Less than $50,000 $50,000-$99,999 $100,000 or more payments. Millennials are entering their prime earning years, where they will
play an important role in overall growth. Further declines in purchasing power
*Total spending excludes personal care and recreation by this cohort could present a stumbling block for continued overall consumer
Source: Morning Consult Economic Intelligence spending growth.
U.S. Spending Report | April 2022 10Incomes are rising — but not enough to keep pace with inflation
As inflation drives up the cost of living, the trajectory of household Annual change in average reported monthly income and CPI inflation
incomes is a critical factor in determining consumers’ capacity to spend.
U.S. adults reported their household incomes increased on average in Income Inflation
March, helped by continued growth in employment and wages and, for
8% 9%
some, a tax refund from the IRS. However, incomes aren’t growing as
6% 7% 7% 7% 8%
quickly as top-line inflation. 5% 5% 2%
3% 0%
Average reported monthly income, all U.S. adults
$2,950 -2%
-7%
$2,900
$2,850
Sep ‘21 Oct ‘21 Nov ‘21 Dec ‘21 Jan ‘22 Feb ‘22 Mar ‘22
$2,800
Source: Morning Consult Economic Intelligence
$2,750
If the inflation rate continues to outpace wage growth, consumers will increasingly
$2,700 need to dip into savings to cover monthly expenses, putting more households in a
$2,650 precarious financial situation. If wage growth accelerates to catch up with inflation,
however, rapid price growth runs the risk of becoming more deeply entrenched in
$2,600
Mar ‘21 May ‘21 Jul ‘21 Sep ‘21 Nov ‘21 Jan ‘22 Mar ‘22 the economy, especially if price and wage growth expectations shift permanently
higher. Bringing down the inflation rate as soon as possible is likely the best path
Source: Morning Consult Economic Intelligence
forward in order to preserve economic stability.
U.S. Spending Report | April 2022 11Less than a third of adults had received tax refunds in March
Respondents were asked which of the following best Average reported tax refund amount, among U.S. adults who already
represents the status of their 2021 tax filings: received their tax refund
I have filed my taxes Jan '22 $2,425
and already received 17%
my refund 13%
32% Feb '22 $2,879
6%
I have filed my taxes 19% Mar '22 $2,265
and expect to receive
a refund, but haven't 15%
received it yet 9% Source: Morning Consult Economic Intelligence
I have filed my
taxes and do not 65% 13% For most adults, tax season comes with a boost to incomes when refunds are paid
expect to receive out. Those who had filed early and already received refunds in March reported
a refund 45%
payouts averaging $2,265.
I have not yet 28%
filed my taxes Although spending fell overall in March on a nonseasonally adjusted basis, the
extra income from tax refunds may be helping to support demand from groups
11% 10% 12% with a higher marginal propensity to spend. For instance, for those with lower
Don't know incomes, a tax payout might have a relatively larger impact on monthly finances.
Jan '22 Feb '22 Mar-22
About 43% of consumers expected to receive a refund and either hadn’t filed yet
or hadn’t received refunds by the end of March. More refunds being paid out in
Source: Morning Consult Economic Intelligence April could help support spending in the coming months.
U.S. Spending Report | April 2022 12Adults who expect increased spending in April exceed share who plan to cut back
Share who expect to spend more in the next month minus the share who Looking ahead to April, the share of adults planning to spend more than they did
expect to spend less in the next month, in percentage points in March was slightly larger than the share who said they plan to spend less. If
consumers follow through with their intentions, spending may be poised for a
modest recovery.
Morning Consult’s Index of Consumer Sentiment is a leading indicator of
spending. The index fell to a series low in mid-March as soaring gas prices
26.92%
compounded overall inflation concerns, war in Europe continued and financial
market volatility bred unease among investors.
16.26%
Through the beginning of April, sentiment had rebounded slightly. Gas prices
8.27% have fallen from their recent peak, alleviating some pressure on budgets and
6.77%
4.08% allowing consumers to redistribute spending back to other categories. Tax
refunds could also provide an added boost to demand. Additionally, the tight
labor market continues to add jobs and support wage growth, replenishing
consumers’ personal finances even as inflation exacts a rising toll on purchasing
-9.45% power.
Inflation and supply chain disruptions for products like groceries will continue to
Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22
serve as a headwind for spending, but gently easing demand for certain
categories and a supportive labor situation could provide the right balance to
Source: Morning Consult Economic Intelligence
facilitate a soft landing for overheating prices and consumer demand.
U.S. Spending Report | April 2022 13SECTION 2 HOUSING
HOUSING KEY TAKEAWAYS
1 Housing spending continues to escalate for renters and lower-income adults.
Increases in housing prices continue to disproportionately impact renters and adults in lower-income
households, whereas homeowners with mortgage payments — who also tend to have more annual income —
reported a decline in housing costs from a year ago.
2 Affordability concerns increased, especially among groups with relatively
higher monthly housing costs.
In March, 1 in 6 adults reported a lack of confidence in their ability to make housing payments, setting a new
series high.
3 Homebuying demand is showing signs of softening.
As the cost of borrowing grows more expensive, the share of prospective buyers is trending lower and
fewer adults think buying a home is a good investment.
15Renters’ spending on housing forged a new series high in March
Average monthly spending on housing, by homeownership status
Renters Homeowners with mortgage
$1,100 $1,500
▲ 13% y/y
$1,000 $1,400
▼ 7% y/y
$900 $1,300
$800 $1,200
1 21 1 ‘21 ‘21 22 2 r ‘2
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1 21 21 ‘22 2
ar ‘2 y‘ ul ‘2 p v n‘ r ‘2 a ay‘ Ju ep‘ ov‘ n ar ‘2
M Ma J Se No Ja Ma M M S N Ja M
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
Renters continue to report steeper monthly housing payment amounts, while rates over the past year to refinance, lowering monthly payment amounts.
homeowners with mortgages reported lower monthly spending on housing Renters not only move more frequently than owners but are vulnerable to rent
than in March 2021. Adults who own homes are more likely to be shielded increases when lease terms expire. Renters who aspire to be owners face an
from increasing housing prices since most of their monthly payment remains uphill battle due to rising interest rates making homeownership more
fixed until they move. Some owners may also have taken advantage of low expensive and elevated inflation eating into savings.
U.S. Spending Report | April 2022 16Monthly housing costs continue to escalate for lower-income adults
Average monthly spending on housing, by income
Less than $50,000 $50,000-$99,999 $100,000 or more
$1,000 $1,500 $2,200
$900 $1,400 $2,100
$800 $1,300 $2,000
$700 $1,200 $1,900
$600 $1,100 $1,800
‘21
‘21
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‘21
‘21
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‘21
‘21
‘22
‘22
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‘22
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‘21
‘21
‘21
‘21
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‘22
‘21
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‘21
‘21
‘22
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‘21
‘21
‘21
‘21
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‘21
Sep
Jun
Oct
Jul
Aug
Mar
Dec
May
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Sep
Nov
Nov
Jun
Oct
Jul
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Mar
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May
Aug
Mar
Dec
May
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Sep
Nov
Jun
Oct
Jul
Jan
Feb
Mar
Feb
Mar
Jan
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Mar
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
Adults in households earning less than $50,000 per year reported the decline in monthly housing payment amounts. Financial market volatility and
strongest increase in monthly housing payment amounts in March compared high inflation are weighing on sentiment for wealthier adults, potentially
with a year ago, with average outlays growing 11%. By contrast, middle-income inducing some to downsize to more affordable housing situations.
and higher-earning adults, who are more likely to be homeowners, reported a
U.S. Spending Report | April 2022 17A growing share of adults worry about making rent and mortgage payments
Concerns about housing affordability have steadily increased over the past year Share of respondents who said they are not confident in their
as rising prices strained household budgets. Millennials and Gen Xers — who ability to pay their monthly housing payment, by generation
tend to spend more than other generations on housing — were the least likely
to be secure about their ability to cover rents and mortgages last month. These Feb '22 Mar '22
groups are also more likely to have children living with them, necessitating
larger and more expensive homes. 14.3%
Gen Z adults
Share of respondents who said they are not confident in their ability to 13.7%
pay their monthly housing payment, all U.S. adults
18.7%
16.8% Millennials
15.6%
14.3% 19.4%
13.3% 13.0% 13.9%
12.4%
11.4%
10.3% 10.5% 10.4% 19.7%
9.5%
8.5% Gen Xers
23.5%
5.7%
Baby boomers
9.8%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 18Monthly housing costs for Gen Z adults stabilized in recent months as moves trended lower
Average monthly spending on housing, Share of adults who said they moved in the past month,
by generation by generation
Gen Z adults Millennials Gen Xers Baby boomers Gen Z adults Millennials Gen Xers Baby boomers
$1,400 10%
$1,300 8%
$1,200
6%
$1,100
4%
$1,000
$900 2%
$800 0%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
Millennials’ monthly housing payment amounts increased in March, adding to to housing demand. Additionally, an increase in remote work during the
affordability concerns for adults within the generation that typically reports the pandemic has enabled greater geographic flexibility. Gen Z adults continue to
highest housing costs. Compared with a year ago, millennials reported fewer be the most active movers, though the oldest generation has been trending
moves in March, potentially signaling a potential decline in some of the trends upward as well. Potentially as a result of retirements, baby boomers have been
driving homebuying demand over the past couple of years. Many adults in this moving homes more frequently, and paying higher amounts on average as this
age group are starting families, prompting a desire for more space and adding group is increasingly exposed to market prices during moves.
U.S. Spending Report | April 2022 19Suburban adults’ home price expectations faltered slightly in March
• The share of U.S. adults who expect housing price Share of U.S. adults who expect housing prices to increase in the next 12 months,
increases over the next 12 months rose 13 points year by community type
over year, from 47% in 2021 to 60% in 2022.
All U.S. adults Rural Suburban Urban
• The decline in price expectations was driven by
suburban adults. Suburban areas have benefited from
The share of rural adults expecting price
the home-buying frenzy over the past year as young reached a series high of 65%
families and remote workers fled cities in search of 80%
more space. Now, rising interest rates threaten to 70%
dampen this trend, weighing on demand and pricing for
60%
suburban homes.
50%
• Future price expectations may be influenced by
perceptions of overall inflation: Rural adults, who tend to 40%
allocate a higher share of total spending to gas, have 30%
been disproportionately impacted by the recent rise in
20%
energy prices. This group reported the sharpest
increase in price expectations in March, with a series 10%
high of 65% of rural-dwelling adults expecting housing 0%
prices to rise. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 20Rising interest rates are souring views on homeownership as an investment
Share of U.S. adults who said buying a home in their ZIP code is a “very” or “somewhat” bad investment • The share of U.S. adults who said they
view home purchasing in their
neighborhood as a somewhat or very
14% bad investment climbed for a third
straight month in March, reaching a
12% series high of 13%.
10% • Although 3 in 5 adults expect home
prices to continue rising, skepticism is
8% mounting about the wisdom of
homebuying. Recent pessimism could be
6%
the result of rising interest rates, as some
consumers may feel that they missed the
4%
boat for affordable loans.
2%
• Others may simply view current prices as
prohibitively expensive, limiting their
0%
ability to afford other expenses or more
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Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 21Housing demand looks poised to soften as prospective buyers dwindle
• Although prospective buyers slightly Share of U.S. adults planning to buy or sell a home in the next 12 months
outnumbered prospective sellers in March, the
housing market is showing signs of cooling.
Sell Buy
• The share of adults planning to buy homes in the
25%
next 12 months has trended gradually lower since
May 2021, reaching a low of 13% last month—
considerably lower than the 16% who said the 20%
same in March 2021. The share of sellers was the
same level as a year ago, resulting in a looser
15%
supply-demand balance than during the same
month in 2021.
10%
• Rising interest rates, high prices and elevated
inflation are likely combining to weigh down
housing demand. Rising borrowing costs are 5%
restricting options for prospective buyers as
monthly interest payments become less
0%
affordable, and the overall increase in living costs
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
from widespread inflation is souring consumers’ ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
views on current buying conditions.
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 22SECTION 3 GROCERIES & RESTAURANTS
GROCERIES & RESTAURANTS KEY TAKEAWAYS
1 Grocery spending declined slightly as consumers grappled with sticker
shock and out-of-stock items.
Grocery spending declined slightly in March amid rising prices.
2 Higher-earning adults are increasingly concerned about food affordability.
The share of adults who said they lacked confidence in their household’s ability to pay their monthly grocery
bill jumped to a series high last month.
3 Restaurant purchases ticked up, driven by lower-income adults.
Elevated grocery prices are triggering reverse-substitution effects: Consumers reallocated more food
spending to restaurants as the cost differential between dining out and preparing meals at home shrank.
24Grocery spending declined slightly amid supply constraints and high prices
Grocery spending was 1.5% lower for U.S. adults in March compared with the Food consumer price index (CPI), all U.S. adults
same month a year ago, with the decrease becoming more substantial after 290
adjusting for inflation. Ongoing supply chain disruptions are likely
280
contributing to lower purchasing: Compared to most other categories, adults
who considered but did not complete grocery purchases in March were more 270
likely to cite unavailability of certain products as the main reason.
260
Average monthly spending on groceries, all U.S. adults
$460 250
240
$450
1 21 1 21 21 2
ar ‘2 y‘ ul ‘2 p‘ v‘ n ‘22 r ‘2
M Ma J Se No Ja a
$440 M
Source: Morning Consult, Bureau of Labor Statistics
$430
Prices for groceries have risen sharply over the past 12 months amid supply
$420
chain disruptions, with the CPI for food consumed at home up 10% year over
year. Persistent shortages and higher commodity costs are continuing to
$410
stoke inflation for food and ingredients. While demand for food is relatively
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1 21 21 ‘22 2
a ay‘ Ju ep‘ ov‘ n ar ‘2 inelastic, price concerns may be driving more consumers to opt for less
M M S N Ja M
costly alternatives.
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 25Grocery spending has climbed faster for Midwesterners than for adults in other regions
Average monthly spending on groceries, by region Monthly percent change between
March 2021 and March 2022, by
region
West Midwest Northeast South
$490
$470 West -9%
$450
Midwest 10%
$430
Northeast 0%
$410
$390 South -3%
$370
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1 ‘21 ‘21 22 22 2
r r y‘ n u g p c v c n‘ b‘ r ‘2
Ma Ap Ma Ju J Au Se O No De Ja Fe Ma
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 26Concerns over food affordability set a new series high in March
Food insecurity concerns reach a new series high in March as prices Share of respondents who said they are not confident in their
jumped and overall inflation growth put pressure on household budgets. ability to pay their monthly grocery bills, by income
About 1 in 6 adults said they lacked confidence in their ability to cover Feb '22 Mar-22
grocery bills. Notably, the highest income group reported the biggest
17.9%
jump in payment concerns. Under $50,000
19.2%
Share of respondents who said they are not confident in their 6.5%
ability to pay their monthly grocery bill, all U.S. adults $50,000-$99,999
11.3%
16.5%
6.1%
13.4% 13.7% 13.2% 13.3% $100,000 or more
12.6%
11.0% 10.7% 11.4%
9.9% 9.3%
8.2% Source: Morning Consult Economic Intelligence
7.7% 8.0%
Compared with last month, middle-income and higher-earning adults’ views
on food affordability deteriorated significantly. These groups were initially
less bothered by inflation than lower-income adults, who tend to have a
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar smaller savings buffer. In March, as inflation remained elevated and a
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22 growing share of adults began to feel the impacts, the gap between lower-
Source: Morning Consult Economic Intelligence and higher-earning adults’ food affordability concerns began to narrow.
U.S. Spending Report | April 2022 2770% of adults expect food prices to continue climbing
• Eighty-nine percent of adults ages 65 and older expect food Share of U.S. adults expecting food prices to increase
prices to rise over the next 12 months, up from 74 percent in in the next 12 months, by age
March 2021. People in this age group, many of whom are
retired and living off fixed incomes, tend to worry more about All adults 18-34 35-44 45-64 65 and over
inflation than working adults, who can expect wages to rise 100%
along with prices. 90%
80%
• Adults under 35 remain least likely to expect price increases —
but expectations have started to catch up with adults overall. 70%
The share of adults ages 18-34 who are expecting price 60%
increases climbed 21 points over the past year, compared with 50%
15 points for the oldest group. 40%
• Supply chain disruptions have already contributed to heighted 30%
price growth for food and groceries, but inflationary pressures 20%
intensified following Russia’s invasion of Ukraine in late 10%
February. Elevated prices for raw ingredients, energy and labor 0%
are adding to food production and delivery costs and
1
2
2
1
1
2
21
21
1
1
21
1
1
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
reinforcing concerns about inflation.
l‘
r‘
‘
n
ay
v
c
g
ar
p
ct
Ju
n
ar
b
Ap
No
De
Ju
Au
Se
Ja
O
Fe
M
M
M
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 28Consumers shopped for groceries less frequently in March as high prices and supply chain
disruptions dimmed demand
Average monthly visits to grocery stores, Average monthly online grocery orders, • Grocery purchase frequency declined
all U.S. adults all U.S. adults overall in March, with online orders
▼ 0.1 since reaching their lowest level since
▼ 0.7 since
March 2021 March 2021 August 2021.
6.2 6.2 6.1 • The potential added cost of ordering
5.9 5.9 6.0 5.8 6.0
5.7 5.8 5.6 5.7 5.8 groceries online is likely offsetting the
convenience of the practice, dragging
down online order frequency.
Surcharges for delivery may now feel
like a bridge too far as consumers
become increasingly price conscious.
2.4
2.1 2.2 2.0 2.1 1.9
1.9 1.9 1.8 1.9 1.7
1.7 1.9 • Supply chain disruptions may also be a
factor: When a desired item is out of
stock, consumers may prefer to select
an alternative themselves rather than
N 21
De 21
Fe 22
Ju 1
Ju 1
2
21
Ja 21
O 1
Se 21
M 22
M ‘21
Au 21
Ju 1
Ju 1
2
21
Ja 21
O 1
Se 21
M 22
ay 1
Au 21
N 21
De 21
Fe 22
‘2
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‘2
‘2
2
‘2
‘2
‘
‘
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ct
ov
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n
ar
c
p
g
ct
ov
rely on pickers.
n
ar
b
Ap
ar
b
n
Ap
M
M
M
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 29Restaurant spending ticked higher in March, but growth remains subdued
Average monthly spending on restaurants, all U.S. adults • While consumers cut back on most
discretionary purchases, restaurant
spending bounced higher in March —
▲ 0.4% since though it remains lower than a year
$107 March 2021
ago on an inflation-adjusted basis.
• Restaurant spending is typically more
expensive than grocery spending, but
$102 $102
$101 $101 the price of dining out has risen less
$100 quickly than the cost of ingredients for
$99 $99
making meals at home over the past
$97
year, narrowing the affordability gap
$96 $96
$95 $95 between dining out and dining in.
According to the Bureau of Labor
Statistics, the price of food at home
rose 10% from a year ago, whereas its
price index for food away from home
r ‘2
1
r ‘2
1
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21
n ‘21 l ‘2
1
g ‘21 p ‘21 t ‘2
1
v ‘21 c ‘21 ‘22 ‘22 r ‘22 increased 6.9%.
a p a u c n b
M A M Ju J Au Se O No De Ja Fe Ma
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 30Lower-income adults drove most of the increase in restaurant spending last month
Average monthly spending on restaurants/takeout, by income
Less than $50,000 $50,000-$99,999 $100,000 or more
$100 $130 $160
$90 $120 $150
$80 $110 $140
$70 Spending on restaurant meals jumped $100 $130
last month after mostly trending lower
since May 2021
$60 $90 $120
2
2
1
1
21
21
1
2
2
1
1
21
21
1
2
2
1
1
21
21
1
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
l‘
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‘
l‘
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ay
v
ar
p
ay
v
ar
p
Ju
n
ar
ay
v
ar
p
Ju
n
ar
Ju
No
n
ar
Se
No
Se
No
Ja
Se
M
Ja
M
M
Ja
M
M
M
M
M
M
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
Adults from households earning less than $50,000 per year drove most of the but they’ve also had relatively stronger jobs gains of late. Additionally, a
increase in restaurant spending in March. Spending levels by this group are windfall from tax refunds would increase marginal propensity to spend more
rebounding from a downward slide that began in May 2021. Members of this for this group than for higher-earning adults.
group tend to be more price conscious than their higher-earning counterparts,
U.S. Spending Report | April 2022 31Takeout and delivery order frequency appears to be stabilizing below the level seen
during earlier stages of the pandemic
Average monthly visits to restaurants, Average monthly takeout/delivery orders, • Consumers’ average monthly
all U.S. adults all U.S. adults frequency for delivery and takeout
orders from restaurants remained
▲ 0.1 since ▼ 0.3 since
stable at 3.1 for a fourth
March 2021 March 2021
consecutive month.
3.7
3.4
3.3 3.3 3.3 3.2 3.1 • Compared with a year ago,
3.1 3.2 3.1 3.1 3.1
3.1 3.0
2.8 2.9 2.9 2.9 2.9 takeout order frequency declined.
2.8 2.8 2.7 2.7 2.8 2.8 2.7
As consumers grow increasingly
comfortable with in-person
shopping and dining, they are
relying less on pickup or delivery.
• Cost concerns may also play a
role: As food prices climb,
consumers may be less inclined to
pay the premium for a restaurant
1
‘2 1
‘21
‘21
‘2 1
‘21
‘21
‘22
‘22
‘2 2
‘21
‘21
‘21
‘21
‘21
1
‘2 1
‘21
‘21
‘2 1
‘21
‘21
‘22
‘22
‘2 2
‘21
‘2
‘2
Jun
Oct
Jul
Aug
Mar
Dec
May
A pr
Sep
Nov
meal without the added value of
Sep
Nov
Jun
Oct
Jul
Aug
Mar
Dec
May
A pr
Jan
Feb
Mar
Jan
Feb
Mar
being served in person.
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 32Restaurants’ share of overall food spending rebounded as the cost differential between dining
in and dining out edged lower
Reported average monthly spending on food, Restaurants’ share of total food spending per month,
all U.S. adults all U.S. adults
Groceries Restaurants
19.4%
$552 $539 $553 18.8% 18.7% 18.8%
$533 $533 $546 $535 $528 $519 $530 $537 $545 $545 18.8%
18.1%
18.3%
18.5% 18.5%
18.3% 18.2%
18.0%
17.8%
Ju 1
1
2
21
Ja 1
O 1
Se 1
M 2
21
Au 1
1
De 1
Fe 2
‘2
‘2
‘2
‘2
‘2
2
‘2
‘2
‘2
‘2
‘2
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l‘
ay
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ct
ov
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b
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Ap
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N
Source: Morning Consult Economic Intelligence
Grocery prices have risen faster than restaurant and takeout prices
over the past year, shrinking the cost benefit of preparing meals at
home. In March, the Bureau of Labor Statistics reported that food at
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
home jumped 10% year over year, compared with a 6.9% increase in
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
prices for food away from home.
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 33SECTION 4 TRANSPORTATION
TRANSPORTATION KEY TAKEAWAYS
1 Rising fuel prices drove up gas spending, but U.S. adults are responding
by driving less.
Gas spending jumped more than any other category over the past year, climbing 30% from March 2021 —
but prices have climbed even more, and a growing share of consumers are consciously cutting back on
mobility to save on driving costs.
2 Used vehicle demand may be starting to weaken.
The share of adults who said they plan to buy used vehicles fell for the first time since November 2021 as
sky-high gas prices made fuel efficiency more critical to car-purchasing decisions. Prices for used cars also
fell for a second straight month in March.
3 Spending on public transit plummeted as consumers curbed
transportation costs.
Rather than turn to buses and subways as an alternative to driving, consumers are cutting back on public
transportation spending. Urban adults — for whom walking and biking is more often a viable transportation
alternative — drove the decrease.
35Gas and insurance spending both increased for a third consecutive month, but auto lease and
loan payment amounts fell slightly year over year
Average monthly spending on vehicle-related categories, all U.S. adults • Motor vehicle insurance costs and gas expenditures
both increased for a third consecutive month in March,
Auto payments Car insurance Gas Total: $432 pushing car ownership and driving expenditures to a
new series high.
• Payment amounts for auto leases and loans registered
$137 $149 a slight decline on a monthly and annual basis. New
$114 $115 $119
$115 $117 $121
$111 $110 $120 $122 $119 and used vehicle prices have soared over the past
year amid supply chain disruptions and strong auto
demand, but higher driving costs may now be forcing
$117 $122 $118 $120 $120 $125
$112 $117 $114 $113 $114 $117 some consumers to reconsider the costs and benefits
$114
of car ownership.
• Gas prices are increasingly weighing on budget-
$160 $145 $157 $149 $154 $163 $149 $142 $142 $148 $160 $159
$137 conscious consumers: 39% of consumers said they
drove less in March, with 68% of this group citing fuel
costs as the main reason. These figures both
1
1
21
1
1
1
2
22
1
1
2
21
21
increased from the previous month, when gas prices
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘2
‘
l‘
r‘
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c
g
ar
p
ct
n
ay
v
Ju
n
ar
b
Ap
De
No
Ju
Au
Se
O
Ja
Fe
M
hadn’t yet peaked.
M
M
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 36Used vehicle demand is starting to wane amid rising fuel costs
Purchasing intentions are elevated year over year for both new and used Share of U.S. adults intending to purchase cars, trucks
vehicles. Some of this is likely attributable to pent-up demand from deferred or SUVs in the next 12 months
purchases as a result of supply chain disruptions. The share of adults who
New vehicle Used vehicle
report having completed purchases remains well below the share aspiring to
29%
buy in the next year.
27%
Share of U.S. adults whose households purchased cars, trucks or SUVs 25%
in the past 12 months 23%
21%
New car and truck purchases Used car and truck purchases
18% 19%
16% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
14%
Source: Morning Consult Economic Intelligence
12%
10% New and used vehicle purchase intentions fell from February to March as
driving and car ownership grew more expensive. Used car purchasing
8%
intentions fell more than new car purchasing intentions, with high gas prices
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M 1
Ja 1
Se 1
21
No 1
1
1
2
2
potentially driving more buyers to opt for newer, more fuel-efficient vehicles.
‘2
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This softening demand is also evident in used car prices, which fell 3.8% in
M
Source: Morning Consult Economic Intelligence March according to the Bureau of Labor Statistics.
U.S. Spending Report | April 2022 37Car ownership rates are stabilizing, with an increase in Gen Z ownership last month
helping to offset declines in the share of millennial and baby boomer drivers
Car ownership levels fell slightly in Share of U.S. adults reporting that their household owns a car, truck or SUV, by generation
March as high gas prices tested
All U.S. adults Gen Z adults Millennials Gen Xers Baby boomers
auto demand.
95%
The decline was driven by
90%
millennials — who had the highest
auto payment affordability 85%
concerns of any generation over
80%
the past 2 months — and baby
boomers, who are more likely to 75%
report concern about inflation than
younger adults, since many live on 70%
fixed incomes and are more 65% Gen Z car ownership
sensitive to rising living costs. reached its highest
60% point since August 2021
55%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 38Older generations drove an increase in auto payment nonconfidence, though millennials
remain the group most concerned about covering loans and leases
Share of respondents who said they are not confident in their ability to Share of respondents who said they are not confident in their ability
make monthly auto payments, all U.S. adults to make monthly auto payments, by generation
Feb '22 Mar '22
12.4%
11.5% 11.6%
10.3% 10.5% Gen Z adults
8.9%
8.9% 8.8% 9.0%
8.5% 8.4% 8.6%
8.0% 8.0% 16.7%
7.7%
Millennials
15.8%
10.3%
Gen Xers
14.8%
4.4%
Baby boomers
5.6%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 39Gas prices rose more than spending in March as consumers cut back on driving
Monthly percent change in spending and prices, all U.S. adults
Average monthly gas expenditure CPI: Gasoline
25%
20%
15%
10%
5%
0%
-5%
-10%
Mar ‘21 Apr ‘21 May ‘21 Jun ‘21 Jul ‘21 Aug ‘21 Sep ‘21 Oct ‘21 Nov ‘21 Dec ‘21 Jan ‘22 Feb ‘22 Mar ‘22
Source: Morning Consult Economic Intelligence, Bureau of Labor Statistics
U.S. Spending Report | April 2022 40Driving costs soar, but few adults are turning to public transportation
Percent change in average spending on transportation categories, • Spending on gas jumped 9% in March
all U.S. adults — the strongest increase of any
category, but smaller than the 18% jump
Since February 2022 Since March 2021
in prices reported by the Bureau of
Labor Statistics. A growing share of
consumers said they made a conscious
30%
effort to drive less to curb fuel costs.
• Although public transportation would
4% seem a natural substitute for driving,
7% 9% consumers increasingly shunned buses
-1% -1% and subways in March. This avoidance
-10%
was unlikely to be related to the
pandemic: Comfort with various modes
-22% of transport all increased last month.
Instead, many consumers appear to be
responding to gas affordability
Car Auto loans and Gas Public concerns by walking, biking or cutting
insurance lease payments transportation back on mobility altogether.
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 41Urban adults’ public transportation spending plummeted in March
• The decline in public transportation Average monthly spending on public transportation, by community type
spending was driven by the group most
likely to rely on it: urban-located adults. Rural Suburban Urban
$120
• City dwellers’ purchases of taxi rides, bus
trips and metro swipes sank to a series low $100
of $64 in March — a 37% decline from the
same month a year ago. The fall is $80
especially surprising considering the
relatively lower levels of comfort with public $60
transit present in March 2021, when general
vaccine rollout was still in the early stages. $40
• As gas prices increase, public transportation
might seem like a lower-cost substitute. In $20
cities, however, more adults seem to be
bypassing this option in favor of an even $0
cheaper alternative: walking or staying Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
home altogether. ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 42SECTION 5 HOME FURNISHINGS
HOME FURNISHINGS KEY TAKEAWAYS
1 Spending on home furnishings fell to a series low in March.
Increasingly price-conscious consumers cut back on large discretionary purchases like furniture and appliances.
2 Millennials drove most of the decline in furniture spending.
Millennials have grown increasingly worried about their ability to cover monthly expenses like housing
and auto payments; as a result, this group cut back on nonessential spending like home upgrades.
3 Further anticipated price increases could be discouraging plans for home
improvement projects.
The share of adults anticipating rising costs for home improvement jumped 14 points from a year ago, while
plans for renovations or home repairs fell over the same time period. Materials and labor costs are already
elevated, and increased pressure on budgets — plus less time spent at home for those who have returned to
in-person work as pandemic concerns fade — may be weighing on home improvement demand.
44Spending on furniture, appliances and other home goods declined as concerns about
inflation discouraged discretionary purchases
Average monthly spending on home furnishings, all U.S. adults
$90 $90
$87
$85
$84
$82
$80
$79
$78
$76
Jun ‘21 Jul ‘21 Aug ‘21 Sep ‘21 Oct ‘21 Nov ‘21 Dec ‘21 Jan ‘22 Feb ‘22 Mar ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 45Millennials’ spending on home furnishings fell to a series low in March
Average monthly spending on home furnishings, by generation Monthly percent change between
February and March, by generation
Gen Z adults Millennials Gen Xers Baby boomers
$160
$140
GenZ adults -4%
$120
Millennials -32%
$100
$80 GenXers 18%
$60
Baby boomers -5%
$40
$20
$0
Jun ‘21 Jul ‘21 Aug ‘21 Sep ‘21 Oct ‘21 Nov ‘21 Dec ‘21 Jan ‘22 Feb ‘22 Mar ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 46Rural and middle-income adults tend to allocate a higher share of furniture purchases to home
improvement supplies, while high-income and urban adults spend more on decorative items
Average monthly spending on home furnishing subcategories, Spending on home furnishing subcategories,
U.S. adults by demographic
Other furniture, appliances or home Rural
goods 13%
Small home appliances like toasters,
coffee makers or blenders 13% Suburban
Bedding, linens and towels 12%
Urban
Indoor furniture like sofas, bed frames,
dressers, chairs or tables 12%
Large appliances like refrigerators,
kitchen stove or dishwasher 12%
$100,000 or more
Materials, tools and supplies for home
repair or renovation 11%
$50,000-$99,000
Lamps or lighting fixtures 10%
Rugs or carpets 9% Less than $50,000
Outdoor furniture 8% 0% 20% 40% 60% 80% 100%
Source: Morning Consult Economic Intelligence, Bureau of Labor Statistics
U.S. Spending Report | April 2022 47Fewer adults anticipated home improvement projects in March 2022 than in March 2021
Share of respondents who intend to purchase furniture in the Share of respondents who intend to purchase home repairs or
next year, all U.S. adults improvement in the next year, all U.S. adults
44%
41% 40% 41%
37% 38%
37% 43% 36% 38%
40% 34% 34% 35% 35%
38% 38% 39%
37% 38%
35% 36% 35% 35% 36%
▼ 5 points
33%
▲ 1 point since since March
March 2021 2021
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 48Over half of consumers expect upgrades to homes and interiors to get more expensive
Share of U.S. adults who expect prices to increase in the next 12 months, by community type
All U.S. adults Rural Suburban Urban
Furniture Home repairs or improvements
▲ 14 points
70% ▲ 18 points 70% since March
since March 2021
2021
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘21 ‘22 ‘22 ‘22
Source: Morning Consult Economic Intelligence
U.S. Spending Report | April 2022 49SECTION 6 APPAREL & PERSONAL CARE
APPAREL & PERSONAL CARE KEY TAKEAWAYS
1 Apparel purchases remained muted for a third straight month as goods prices
climbed.
Rising costs for essential household purchases like groceries, gas and housing are crowding out spending on
discretionary categories like clothing, accessories, beauty products and salon services.
2 Personal care goods spending increased, whereas services spending fell.
Hygiene products are essential goods, and consumers are unlikely to defer purchases regardless of price
concerns. Services are slightly easier to delay as a cost-savings measure without significant lifestyle disruption;
spending on categories like haircuts and spa services declined as consumers’ concern over inflation increased.
3 Price-sensitive groups trimmed apparel and personal care spending the most.
Millennials’ heightened concerns about paying for essential expenses like housing and auto loans in March
prompted this generation to cut back on apparel spending. Middle-income and high-earning adults — who allocate a
higher share of spending to discretionary goods and services like cosmetics or spa services — cut back
nonessential purchases more than the lowest earners did. The lowest-earning group had little room to cut, since
spending was mostly concentrated on staples like hygiene products.
51Apparel spending sank as prices took off in early 2022
Average monthly spending on apparel, U.S. adults
Monthly spending on apparel CPI: Apparel
$110 130
$105 128
$100 126
$95 124
$90 122
$85 120
$80 118
1
2
22
1
2
21
1
1
1
1
1
1
1
1
1
2
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1
2
21
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b
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Ju
Ju
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Ja
O
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Fe
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M
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Source: Morning Consult Economic Intelligence, Bureau of Labor Statistics
U.S. Spending Report | April 2022 52You can also read
