New survey shows U.S. spending intentions remain positive

Investing.com -- U.S. consumer spending intentions continue to improve and remain above historical averages, according to a new survey from Stifel, which said easing job security concerns and stronger holiday spending plans are supporting a cautiously optimistic outlook.

Stifel analyst Matthew Smith told investors in a note Thursday that the firm’s survey shows that “U.S. consumer spending intentions are improving on a sequential basis and exceed historical averages,” with gains skewing toward higher-income households but also improving among lower-income respondents.

Stifel described the results as evidence of an uneven economy across income groups, while still viewing the trends as broadly supportive for consumption.

Net discretionary spending intentions are said to have risen 9 points sequentially from early November to early December and improved 23 points from mid-October.

When comparing three-survey and six-month averages, spending intentions increased across income brackets, with respondents earning more than $100,000 per year showing the largest gains, while those earning less than $50,000 also improved.

Job security perceptions were also said to have strengthened, which Stifel called “a positive watch point for consumer spending.”

Smith noted that fewer respondents are worried about losing their jobs, adding that concerns about job loss can have a meaningful psychological impact on spending behavior.

The survey also pointed to improving winter holiday spending intentions. Stifel said consumers plan to spend more this holiday season than last year, with the increase “driven primarily by high income groups,” though lower-income consumers also plan modest increases.

Beyond spending, Stifel highlighted shifting consumer preferences, noting “the growing popularity of protein food and nicotine pouches with consumers,” particularly among younger demographics.

You May Also Be Interested In

• Wall St set to open higher as tech rebounds, Micron earnings eyed
• Take-Two rises as GTA VI priced at $79.99, November release date confirmed
• Lockheed Martin wins $8.4B missile contract modification