State of the US Consumer: July 2024
Financial and spending sentiment show signs of optimism
Article
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3-min read
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31 July 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 reached a four-year high as discretionary spending intentions see some recovery
- Deloitte’s financial well-being index increased to 100.3 in June, up by nearly five points over the past year (figure 1).
- Higher-income Americans appear to be driving the recent improvements seen in financial sentiment. Since September 2022, the percentage of higher-income respondents that say their financial situations improved over the past year increased by 12 points to 74%; however, sentiment remained significantly lower and relatively unchanged among middle- and lower-income respondents (figure 2).
- July spending intentions also climbed higher, particularly the discretionary category average (figure 3). However, discretionary spending intentions remain weak compared to 2021 levels, while nondiscretionary categories have surpassed 2021 levels and savings intentions are nearing them.
- Spending intentions for housing and leisure travel continue to see the strongest increases across the 16 spending categories (figure 4).
Notes: In figure
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. Nondiscretionary categories include housing and utilities,
transportation, groceries, and health care. Spending intention–related index values are represented by
a three-month exponential moving average.
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 analysis.
Deloitte Insights | www2.deloitte.com/insights
Place holder for notes:
BY
Anthony Waelter
United States
Stephen Rogers
United States