State of the US Consumer: August 2024
Rising optimism about personal finances is yet to boost spending confidence
Article
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3-min read
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30 August 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
- Deloitte’s financial well-being index rose for a third consecutive month, reaching a four-year high of 102.6 in July 2024 (figure 1).
- Higher-income Americans appear to be driving the recent improvements in financial sentiment. Since September 2022, the percentage of higher-income respondents who say their financial situation improved over the past year increased by 13 percentage points to 77%; however, sentiment remains lower or relatively unchanged among middle- and lower-income respondents (figure 2).
- Despite rising optimism about personal finances, discretionary spending intentions remain subdued, while non-discretionary categories surpassed 2021 levels with savings intentions nearing them (figure 3).
- Spending intentions for housing continue to climb and consumers may be in search of potential cost-saving opportunities in other categories (figure 4).
- Respondents continue to prioritize leisure travel (figure 4).
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 regarding personal financial situation for the year ahead.
Higher index values represent stronger financial well-being. Spending intentions represent respondent’s
estimated spending for the next four weeks. In figure 3, discretionary categories include leisure travel,
restaurants, recreation and entertainment, electronics, clothing, personal care, household goods, education,
child care, and home furnishing. Non-discretionary categories include housing and utilities, transportation,
groceries, and health care. Spending intention–related index values are represented by a three-month exponential
moving average.
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 analysis.
Deloitte Insights | www2.deloitte.com/insights
Place holder for notes:
BY
Anthony Waelter
United States
Stephen Rogers
United States