The daily consumption of Americans has finally received some relief from inflation, with prices of major commodities dropping last month. According to data released on Thursday, clothing prices have experienced their largest decline since the outbreak of the epidemic, with clothing prices falling across the board, from women's clothing to men's clothing and children's shoes. In addition, the prices of many household items decreased last month. The price of bedroom furniture has hit its largest decline in over a year. The prices of household appliances such as laundry equipment have also significantly decreased.
Lauren Fernandes, Director of Global Thought Leadership at NIQ, said, "The mainstream sentiment this season will be to strive to meet the absolute necessities of families. In my opinion, people may not buy a big new piece of furniture this year unless they really need it
However, clothing and furniture are only a few highlights of household consumption. Americans still face the problem of rising prices for most essential goods, including housing and energy, and wage growth cannot keep up with inflation. Although the strong job market has provided many consumers with the motivation to continue spending, some consumers feel constrained as their purchasing power weakens.
According to NIQ data, approximately 78% of Americans are considered "vulnerable" consumers, which means they are very cautious about their own expenses. This is an increase from 74% in 2022, as the prices of basic necessities such as fuel and food have put pressure on shoppers.
Many people rely on credit cards to maintain their balance of income and expenditure, and it is expected that this year's holiday online shopping first buy then pay service will reach a historic high. Retailers are realizing the uncertain financial outlook and increasingly turning to promotions to attract buyers.
Although the prices of certain goods are decreasing, the prices of services are still rising. The categories with significant increases in inflation in the US Department of Labor report include entertainment services such as sports event tickets. Fernandes said, "People are doubling their investment in truly important holiday moments, rather than frantically dispersing their expenses like in the past, which has received a lot of attention