FridayOL

Feeling the pinch? A new Yahoo Finance/Marist Poll reveals a significant shift in American consumer behaviour this summer. Rising concerns over tariffs are prompting households to tighten their belts, with plans to curtail spending on everything from travel and dining out to big-ticket purchases.

The poll, released earlier this week, paints a picture of cautious optimism tempered by economic anxieties. While the US economy has shown resilience, the ongoing trade tensions with key global partners are starting to impact consumer confidence and spending habits. The results indicate a growing awareness of potential price increases and economic uncertainty, leading many Americans to rethink their summer plans.

What's Changing?

The survey highlights several key areas where consumers are planning to reduce spending:

• Travel: A noticeable drop in planned vacations and weekend getaways. Families are opting for closer-to-home destinations or postponing trips altogether.
• Dining Out: Fewer restaurant visits and a greater emphasis on home-cooked meals. Consumers are actively seeking out deals and discounts when they do dine out.
• Large Purchases: Postponement of major purchases like appliances, furniture, and electronics. Many are waiting to see if prices stabilise before committing to significant investments.

This shift isn't impacting all demographics equally. Lower-income households are reporting the most significant changes, as they are more vulnerable to price fluctuations and economic uncertainty. However, even higher-income households are showing signs of increased caution.

The Tariff Factor

The poll directly links this change in spending behaviour to concerns about tariffs. Consumers are worried about the potential for higher prices on imported goods, which could impact a wide range of products and services. The uncertainty surrounding trade negotiations is contributing to a general sense of caution.

“Consumers are telling us they’re aware of the tariffs and they’re factoring that into their spending decisions,” explains a Marist poll analyst. “They’re not panicking, but they are being more strategic about where they spend their money.”

Looking Ahead

The long-term impact of these shifts in consumer behaviour remains to be seen. If trade tensions persist, further cuts in spending could dampen economic growth. Businesses, particularly those reliant on consumer spending, will need to adapt to this new environment. Strategies focused on value and affordability are likely to be key to success.

The Yahoo Finance/Marist Poll serves as a timely reminder of the interconnectedness of the global economy and the importance of consumer confidence. As the summer season unfolds, it will be crucial to monitor spending trends and assess the evolving impact of trade policies on American households.