Consumers plan to trim restaurant, entertainment spending this summer

Between 45% and 60% of consumers plan to maintain the same amount of online spending on essentials.

Consumers are continuing to make spending tradeoffs in the face of high prices.

According to the summer edition KPMG’s 2024 Consumer Pulse Survey of 1,100 American adults, 21% of consumers expect to spend more on personal care products this summer, a significant drop from a year ago when about one-third (32%) expected to do so. Almost three times as many consumers anticipate spending less (43%) than more (15%) on out of home entertainment, and almost twice as many consumers plan to spend less (41%) than more (21%) on restaurants.

On average, KPMG found that consumers think they will reduce their monthly spend on restaurants by 9%, entertainment and media (both in and out of home) by 8% and travel and vacations by 7%. Between 45% and 60% of consumers plan to maintain the same amount of online spending on essentials, but only grocery (29% expect to spend more, 18% say spend less) saw an expected increase.

“Consumers are tightening their belts another notch as they hunt for discounts, and even some essentials are being impacted. We have already seen a few retailers lower prices, as they look to maintain the balance between their margins and demand,” said KPMG U.S. consumer and retail sector leader Duleep Rodrigo. “If consumers continue to tighten their spending, retailers will want to consider whether placing more emphasis on product sizing and the experience they offer consumers may be more effective in the long run than just lowering prices.”