Unlike past pandemic waves, Omicron has yet to rattle consumer confidence in the U.S., a new survey by Deloitte finds. Overall financial sentiment and discretionary spending intentions for the month ahead remain steady.
U.S. consumers expect to spend an average of $4,800 per household over the upcoming month, with one-third (35%) of their budgets slated for more discretionary categories such as recreation and entertainment, restaurants, electronics and leisure travel. These spending intentions have remained virtually unchanged over the past several months.
Roughly 6 in 10 (59%) Americans remain optimistic that their financial situation will improve within the next three years, a figure that’s also remained steady since September 2021.
The percent of consumers concerned about their level of savings (50%) and credit card debt (40%), while roughly unchanged since September, still remains relatively high.
Vehicle demand shows some signs of weakening. In December, 16% of respondents were planning to purchase a new vehicle within the next six months, down from 29% in September. Conversely, purchase intent for used vehicles increased slightly, from 9% to 13%.
Inflation concerns may be starting to ease. For the first time since September, the percent of U.S. consumers who cite rising prices for everyday purchases such as groceries and clothing did not climb.
More Americans hit the brakes on leisure travel
While consumer confidence generally appears unscathed, renewed pandemic uncertainty is likely having a stronger influence on travel decisions, Deloitte said. While more Americans may be thinking twice about staying in a hotel or flying, some travel segments, such as car rental and private accommodation rentals, might be proving to be more pandemic proof.
- Spending intentions for leisure travel for the month ahead have been gradually weakening, falling from an average of roughly $330 per survey respondent in September to $240 in December.
- Booking intentions for the three months ahead slipped across most travel products in December, including hotel (47%), domestic air (34%), cruise (21%) and international air (19%).
- Amid the rise of Omicron, booking intentions for both rental cars (34%) and private accommodation rentals (34%) have remained steady, suggesting consumers continue to perceive these forms of travel as safer.
- Among employed adults who typically travel for business, 67% expect to take a business trip within the next three months, down significantly from 80%.
“Consumers have been resilient, adapting behaviors to the pandemic as the number of cases continues to fluctuate. The pandemic continues to create uncertainty that is affecting how and when consumers travel, attend work and school, and generally interact with others. Yet, time and again, consumers have demonstrated the ability to be agile and flexible as we move into the next phase of this collective global experience,” said Stephen Rogers, executive director, Deloitte Insights Consumer Industry Center, Deloitte Services LP
Internationally, the story is a bit different with the Deloitte survey by Deloitte finding that for some activities, Omicron has erased nearly a year of progressively improving safety precautions, especially such activities as going to the store, traveling and restaurant dining.