• by Ray Schultz , September 13, 2022

Pinched purses have caused 37% of U.S. consumers to decrease their spending. But 36% say their spending has remained the same and 27% report an increase, according to Jungle Scout’s Q3 Consumer Trends Report, released on Tuesday. 

Overall, 84% of shoppers say inflation has affected their spending -- a 9% increase over Q2.  And nearly 90% have observed higher product prices in their day-to-day living.

Worse, 52% of consumers say their household income is unstable -- a 36% hike from Q2. And 42% rely on financial assistance/unemployment benefits, up from 34% in Q2. 

Almost all product categories have taken a hit. People are buying less: 

• Alcohol — 39%
• Arts, Crafts & Sewing — 38%
• Automotive Parts & Accessories — 45%
• Baby Products — 27%
• Beauty & Personal Care — 52%
• Books, Magazines & Newspapers — 41%
• Cleaning Supplies — 58%
• Clothing — 47%
• Electronics — 46%
• Exercise/Fitness supplies — 38%
• Garden & Outdoor — 39%
• Groceries — 45%
• Home &. Kitchen — 47%
• Office Supplies — 45%
• Pet Supplies — 47%
• Tobacco, Pipes & Accessories — 37%
• Toys & Games — 41%
• Vitamins & Dietary Supplements — 51%

At the same time, 32% have decreased their online spending, while 33% have increased it and 35% say it remains the same. 

Contrary to some other reports, consumers are starting their holiday shopping earlier this year: only13% plan to wait until Thanksgiving or later -- down from 27% in 2021.

Two of the most popular ways of cutting back are to spend less per person on gifts (54%) and buying discounted items (47%).

Another 38% plan to reduce the number of people they’re gifting, and 36% are spending less on holiday decorating. And 34% are cutting back on holiday activities/travel, while 25% are buying used/thrift store gifts and 21% are regifting items.   

In addition, consumers are:

• Making fewer fun or impulse purchases—76% (up from 72% in Q2)
• Saving up for a big purchase or expense—55% (up from 49% in Q2).

One area that has shown an uptick is the number of consumers likely to buy via social media, with Tik Tok usage for this purpose from 11% in Q2 to 22% in Q3. 

Jungle Scout surveyed 1,025 U.S. consumers between August 5 and August 8, 2022.