Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

MS Consumer Survey: 2/3 Plan Spending Cut In Next 6 Months, 30% Report No Savings

Stock Markets Jul 01, 2022 22:32
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Senad Karaahmetovic

As much as 2/3 of consumers are planning to cut their spending over the next 6 months due to high inflation, Morgan Stanley warns.

After inflation, the U.S. political environment is a cause of concern for 41% of survey respondents, with the COVID-19 spread falling to 25% from the prior 32%.

“Apart from inflation, low-income consumers are generally more worried about the inability to pay rent and other debts, while upper income consumers over index on concerns over investments, the political environment in the U.S.and geopolitical conflicts,” strategist Michelle Weaver noted in a client note.

In general, the survey results showed weakening consumer confidence trends with only 23% expecting the economy to get better, which is the lowest since Morgan Stanley started conducting this survey and down from 26% two weeks ago.

On the other hand, 59% of consumers expect the economy to get worse, which compares to the same number seen two weeks ago and 50% in April.

“We asked consumers to estimate for how long they can use their savings to maintain their current lifestyle. Overall, 30% of consumers do not have savings, another one third have 3 months or less in savings, 23% have 4-12 months and 13% more than a year; this yields an average savings reserve of 4.4 month,” Weaver added.

Travel plans also look weak compared to last year, with 55% of consumers planning to travel in the next six months vs 64% in the summer of last year.

“Cruises and international travel were the most likely to be delayed or postponed,” the strategist concluded.

 
MS Consumer Survey: 2/3 Plan Spending Cut In Next 6 Months, 30% Report No Savings
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email