What changes have taken place in Americans’ consumption behavior under high inflation?

It is learned that according to a survey conducted by market research firm Digital River, due to the influence of inflation, the financial situation and spending of American consumers have undergone tremendous changes in the past six months.

Poor financial situation

Currently, fewer than two-fifths of U.S. adults (39%) say they are “financially well,” while a quarter (25%) say they are “struggling” and more than a third (34%) say they are “making do.”

Cutting back on spending

The survey shows that in the past six months, 67% of American consumers have cut spending on non-essential items, 49% have cut spending on travel, 35% have cut spending on necessities, and 35% have cut spending on utilities (26%). Only 14% of American adults have not taken any measures to reduce spending.

The rise of “buy now, pay later” payment methods

The survey also found that due to rising prices, the payment methods of American consumers when shopping online have also changed, and the use of "buy now, pay later" has gradually increased. In the past 6 months, 64% of online shoppers have used this payment method. Convenience (51%), tight funds (48%) and rising living costs (44%) are the main factors that drive consumers to use the "buy now, pay later" payment method.

Additionally, 31% of consumers use credit cards to spend money on online shopping, with the main reasons being convenience (44%), tight budgets (42%) and increased product costs (40%).

The frequency of online shopping has not increased significantly

39% of American adults have shopped online more frequently in the past six months, while 41% said their online shopping frequency has not changed. Convenience (59%), free shipping (37%) and a wide variety of products (33%) are the main reasons that drive American adults to shop online more frequently.

Christmas budgets affected

The survey also pointed out that almost two-fifths (38%) of American consumers plan to cut spending on Christmas 2022; one-third (32%) said there would be no change compared to previous years; and two-fifths (40%) said they would spend less.

Editor ✎ Nicole/

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