State of the US Consumer: March 2024
Americans are still acclimating to their new price environment
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Deloitte Center for Consumer Industry | Deloitte Center for Global Economic Research
Key insights about US consumers from Deloitte’s ConsumerSignals
Higher prices are likely still key in plateauing financial sentiment and spending intentions.
- The percentage of US respondents concerned about rising prices remained at 76% in February. This level of price concern is comparable to June 2022, when inflation peaked at 9.1% (figure 1).
- Deloitte’s financial well-being index has plateaued over the past year, with February’s 98.4 remaining relatively unchanged from 99.6 a year ago (figure 2). The index has generally moved inversely with inflation over the past four years (figure 2). Persisting inflation above the Fed’s 2% target likely continues to weigh on financial sentiment.
- Peak inflation levels in June 2022 also coincided with a long-term decline in consumer spending intentions. Discretionary spending intentions are still yet to recover (figure 3).
- At the category level, spending intentions suggest consumers continue to reshape their budgets to accommodate rising costs. Spending intentions in non-discretionary categories like housing, groceries, and transportation are higher or even, relative to 2021, while categories like clothing, personal care, and household goods remain at two-year lows. Strong spending intentions in the leisure-travel category remain an outlier (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 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.
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