13% of high-income consumers reported difficulties with bill payments
21% of consumers struggled to pay bills in summer 2023
34% of low-income consumers faced challenges in paying bills
In the summer of 2023, consumers faced increasing financial instability as more and more individuals found themselves living paycheck to paycheck. According to a report by PYMNTS Intelligence, 21% of consumers were struggling to meet their financial obligations in July, an increase from 18% the previous year. Among low-income consumers, the proportion facing challenges in paying bills rose to 34%, up from 31% in the prior year. Even high-income consumers saw a rise in bill payment struggles, with 13% reporting difficulties compared to 9% in 2022 (PYMNTS Intelligence,
Inflation finally pushed Mark Hawkes to a breaking point.
Hawkes canceled his gym membership and plans to downgrade his family’s cable TV service significantly.
He is spending $2,500 to remodel his bathroom, a project that wasn’t exactly a must-do.
American consumers are cutting discretionary spending and leaning towards practical choices but still buying things they really want, according to analysts.
Out: Clothing, furniture and dining out. In: Vacations, concerts and jewelry.
Lower-income households have been hit harder by inflation and are making basic choices based on rent and other essentials.
Middle- to upper-income groups have seen their wages keep pace with inflation over the past year but are being more discerning about how they spend those dollars.
Hawkes plans to retire in five years and wants to ensure that he and his wife have an ample nest egg. He is doing the bathroom project work himself to save on labor costs.
Hawkes and his wife are planning a rare exotic trip this fall but will stay at an extended-stay hotel with a kitchen in the room to avoid pricey restaurant meals.
Annual inflation has fallen sharply from its 2022 peak, but progress has stagnated since fall. Consumers continue to see prices climb and remember what they were before the run-up began in 2021.
Consumer spending, after adjusting for inflation, dipped in April after a solid first quarter. Economists wonder if this marks the beginning of a more sustained slowdown.
40% of Americans say they’re splurging, down from 51% in 2021. More affluent households are showing some financial strain as they ‘trade down’ and shop at big-box discount stores or online to save on groceries and other staples.
People are not dining out with abandon as they did when COVID faded, especially those in households with less than $75,000 in income. At least some of the time, 68% of people are switching from restaurant meals to groceries.
Experiences such as vacations, concerts and some movies (think blockbusters like Barbie and Oppenheimer) are becoming popular purchases.
Accuracy
Consumer spending, after adjusting for inflation, dipped in April after a solid first quarter.
Americans are tired of high inflation and interest rates, leading to companies offering bargains and staples to benefit.
Deception
(50%)
The article makes selective reporting by focusing on the increase in spending on experiences such as vacations, concerts, and jewelry while downplaying or omitting the fact that consumers are also cutting back on discretionary spending in other areas like clothing, furniture, and dining out. This creates a misleading impression of consumer behavior.
But they are particular about what (experiences) they are spending on.
Americans are paring back the kinds of goods purchases that dominated their outlays while they hunkered down at home during COVID and cutting loose for experiences.
Ross Stores plans to open about 90 new stores this year due to increased demand for value.
TJX, parent of TJ Maxx, Marshalls and HomeGoods stores, has also benefited from the trend with strong revenue and expansion plans
Dollar General beat Wall Street’s estimates for sales in the first quarter and reported increased foot traffic.
Accuracy
Americans are tired of high inflation and interest rates, leading to companies offering bargains and staples to benefit.
Consumer spending, after adjusting for inflation, dipped in April after a solid first quarter.
Retail sales have weakened.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The author makes several statements about the economic situation and consumer behavior without committing any logical fallacies. However, there are a few instances of inflammatory rhetoric that slightly reduce the score. The author states that 'Americans are worn down by high inflation and interest rates' and 'diners do care' about price increases in restaurants. These statements may be true, but they use emotive language to elicit a strong reaction from the reader.
]Americans are worn down by high inflation and interest rates[
']diners do care['] about price increases in restaurants
