US consumers will continue to cut spending in 2023! These categories are the most frustrated!

It is learned that according to a report jointly released by PYMNTS and LendingClub, affected by inflation, US consumers will continue to cut spending, reduce transactions and give up various purchases in 2023.

Although inflation fell from 9.1% in July 2022 (its peak) to 6.5% in December, Americans' holiday incomes were not as healthy as analysts had predicted. A survey from PYMNTS found that at the end of 2022, there were 9.3 million more American consumers living paycheck to paycheck than the previous year.

The report noted that as inflationary pressures undermine Americans' optimism, many consumers may avoid buying big-ticket items, primarily electronics, appliances and leisure travel, in 2022. This year, only 35% of consumers will spend money on leisure travel, and 24% will buy expensive electronics or appliances.

Among consumers who live paycheck to paycheck, 30% plan to spend on leisure travel. On the other hand, 8.7% of consumers said they will not continue to spend on leisure travel.

This trend is also reflected in the purchase of higher-cost household items. Only 22% of people with no financial difficulties and 29% of people with financial difficulties said they would buy expensive electronic products or appliances. Among the middle-income group (earning $50,000 to $100,000 per year), less than 20% of consumers said they would buy large electronic products, clothing or gifts in 2023.

The report also highlights that 54.8% of American consumers did not buy expensive clothing or accessories last year and they do not plan to buy any this year. 55% of consumers did not buy a car last year and will not buy one this year.

When asked whether they would buy “any kind of expensive gift” or “other expensive items,” 54.9% of consumers said they would not buy the former and 55% said they would not buy the latter, regardless of whether the retailer ran any promotions.

Editor ✎ Nicole/

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