According to a Morning Consult survey conducted for CNBC, the overwhelming majority of Americans (92%) have significantly reduced expenses in the last six months. Clothing and apparel became the first category for spending cuts (63%), followed by restaurants and bars (62%), as well as outside entertainment (56%). In other words, people are cutting back on everything that is not absolutely essential. More than half of respondents believe that the unfavorable economic situation and stubborn inflation are to blame for their current state. Among lower-income households earning $50,000 or less, 55% reported they are feeling the burden of the dire economic situation in the country. Meanwhile, 61% of middle-income households earning $50,000 to $100,000 and 46% of households making at least $100,000 (higher-income) reported the same. Indeed, it is hardly possible to survive in the US by making $50,000 a year, or $4,000 a month. That is why 76% of US adults surveyed by the agency plan to keep reducing expenditures in the next six months, especially when it comes to non-essential items. Nearly 62% of respondents are prepared to cut back even on essentials. Considering the average household income growth in the US, such sentiments look quite natural. Thus, in 2022, inflation-adjusted household income fell by 2.3% to $74,580.
