State of the US consumer: May 2024
Steady financial sentiment yet to bolster spending confidence
Article
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3-min read
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31 May 2024
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Deloitte Center for Consumer Industry | Deloitte Center for Global Economic Research
Key insights about US consumers from Deloitte’s ConsumerSignals
Despite persisting inflation, Deloitte’s financial well-being index showed little change in recent months, but forward-looking spending intentions still point to robust consumer focus on saving instead of overspending.
- Deloitte’s financial well-being index fell slightly to 97.5 in April from 98.7 in March. The index has generally held steady since early 2023 (figure 1).
- Monthly spending intentions (that is, the amount respondents estimate spending in the month ahead) remain below the index’s 2021 baseline for the last 23 months, driven by weakness in planned discretionary spending (figure 2). Savings intentions show more resilience.
- Spending intentions for housing continue to climb while groceries and most discretionary categories decrease (figure 3).
- Leisure travel spending intentions remain an exception (figure 4). While down slightly compared to last May, the category remains strong.
Notes: In figure
1, Deloitte’s financial well-being index is measured across six dimensions of financial health: (1) confidence
in the ability to meet current financial obligations; (2) comfort with level of savings; (3) income relative
to spending; (4) delays in making large purchases; (5) assessment of current personal financial situation
compared to prior year; and (6) expectations of personal financial situation for the year ahead. Higher
index values represent stronger financial well-being. In figure 4, total spending intentions include housing
(including utilities and maintenance), transportation, groceries, health care, clothing, household goods,
personal care, education, internet and data, recreation and entertainment, leisure travel, restaurants,
electronics, and home furnishings. Non-discretionary categories include housing, transportation, groceries,
and health care. Starting March 2024, spending intentions index values are represented by a three-month
exponential moving average (EMA).
Sources: Deloitte ConsumerSignals; US Bureau of Labor Statistics.
Sources: Deloitte ConsumerSignals; US Bureau of Labor Statistics.
Deloitte Insights | www2.deloitte.com/insights
Sources: US Department of Commerce, US Bureau of Labor Statistics, The Wall Street Journal (all sourced through Haver Analytics); Deloitte Services LP analysis.
Deloitte Insights | www2.deloitte.com/insights
Place holder for notes:
By
Anthony Waelter
United States
Stephen Rogers
United States