41% of consumers plan to cut restaurant spending; over 50% expect higher grocery expenses.

According to the 2024 KPMG Consumer Pulse Survey, U.S. consumers are adjusting their spending habits this summer due to inflationary pressures. Here are the key findings:

  • Essential Goods and Services:
    • Consumers expect to spend less on personal care products (considered essential) and restaurants, travel, and entertainment.
    • About 21% of consumers anticipate spending more on personal care products, a significant drop from last year’s 32%.
    • However, over 50% of consumers think they will spend more on groceries this summer.
  • Online Spending on Essentials:
    • While 53% to 65% of consumers plan to maintain the same online spending on essentials, only 29% expect to spend more on groceries.
    • Personal care products and prescription medicines are expected to have net less spend online.
  • Experiences Under Scrutiny:
    • Consumers plan to reduce spending on experiences:
      • 43% anticipate spending less on out-of-home entertainment.
      • 41% plan to spend less on restaurants (compared to last year’s net increase).
      • Travel and vacations also face reduced spending.
  • Data Collection Concerns:
    • Gen Z (60%) is least aware that companies gather data about their online activity for personalized offerings.
    • Across all generations, there’s concern about data collection, yet more than half are willing to trade personal data for financial incentives.

In summary, consumers are tightening their belts, emphasizing essentials, and scrutinizing experiences this summer. Restaurants, in particular, face reduced spending compared to last year.

Source:

https://kpmg.com/us/en/media/news/kpmg-consumer-pulse-survey-summer-2024.html

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