Despite inflation — which is hitting Americans’ wallets in nearly every aspect of daily life — and soaring rates — also affecting everything from credit cards to mortgages — not all is gloom and doom. In fact, most Americans feel very good about what’s in store next year.
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Attest’s fourth annual U.S. Consumer Trends Report, released Dec. 13, noted there’s been a seven percent jump in the number of consumers who feel “very positive” about next year — hitting 33% of Americans (up from 26% last year). This segment of optimistic Americans helps increase the overall number of people feeling positive about 2024 to 71% — up from 64% last year, according to the Attest data.
In turn, the survey also found that Americans’ money behaviors are set to shift in 2024.
Even the most cautious spenders are willing to spend more next year
Attest found that even the most careful spenders intend to spend more in 2024. Indeed, the percentage of Americans who said they are spending “cautiously” has declined by 5.6 percentage points to 53% compared to last year. Meanwhile, nearly a quarter — 24% — said they plan to spend “freely” next year.
“Caution around spending is returning to the levels we recorded two years ago, which is likely due to slowing inflation,” said Attest CEO Jeremy King. He added that the Fed is expected to hold interest rates steady in 2024 and, alongside retreating predictions of higher gasoline and rental costs, this is adding to consumer confidence.
“Essentially, people expect the economy to be better in 2024,” added King.
The sentiment is even more salient in younger generations, as consumers in the 18-24 age bracket seem to be throwing caution to the wind when it comes to spending, with 39.7% spending freely — higher than any other age group, according to Attest.
On the other hand, those in the 55-64 age group are the most cautious, with 68.9% saying they will spend carefully. There’s a noticeable gender split, too, with men more likely to be spending freely than women.
Paying more for brands that align with their morals
Next year, consumers said they are willing to pay a premium for environmentally friendly/ethical products. In 2023, 57% of consumers weren’t prepared to pay anything extra for a green product, but ahead of 2024, that figure has declined to 44%, according to Attest.
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As King explained, high inflation forced people to sacrifice their preferred brands in favor of more affordable alternatives, and ‘green’ brands — typically priced a little higher — were one casualty of this behavior change.
“But with inflationary pressures easing, consumers — particularly younger ones — are prepared to pay more once again,” he said. “Shoppers aged 18-24 over-index for being willing to pay a ‘moderate amount more’ — 28.3% — while those aged 25-34 over-index for a willingness to pay ‘a lot more’ — 7.7%.”
Online shopping will continue to grow
Online shopping for non-food purchasing will continue to increase in popularity in 2024, with a 5.5 percentage point increase in the number of consumers who say they shop “mostly” or “always” online — to 38.9%.
Consumers want humorous brand messaging in 2024
More than half — 56% — of consumers want humorous brand messaging and, in 2024, over a quarter of Americans do not want brands to be involved in hot-button matters, the survey found.
King stated that in line with the increasing consumer positivity that we see, Americans are starting to want to hear different messaging from brands. “They no longer need reassuring marketing, for example about navigating the cost of living, but instead want brands to match their happy mood with funny ads,” he said.
Yet, King added that the data also shows a widening gap between younger and older consumers, with a 5.5% increase in people who don’t want brands to be political — to 26.3% — which is driven by people aged 55+.
“At the other end of the scale, younger consumers over-index for wanting brands to act on a variety of issues,” he noted.
Brand interaction increasing on TikTok and YouTube
While Facebook is where the highest percentage of overall consumers interact with brands — 61.5% — this is firmly driven by older consumers and interaction is not growing like it is on TikTok, noted King.
“YouTube is popular across the board and this is probably because it’s a video-centric platform,” he said. “Content on the platform is easily searchable and its algorithms ensure users are served with videos that interest them, rather than having to scroll through posts in chronological order. This lends itself well to brand engagement.”
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This article originally appeared on GOBankingRates.com: US Consumers Are 7% More ‘Positive’ Headed into 2024 — 5 Ways Their Money Behaviors Are Set To Shift
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