As inflation persists, Americans are cutting spending on just about everything.
For the second straight month, total spending declined, according to data from business intelligence firm Morning Consult. That includes spending on services, durable goods and nondurable goods.
In particular, people are closing their wallets and forgoing spending on the following expenses.
Airfare
Change in real spending in this category between April 2022 to April 2023: 33% decrease
In April 2022, among all American adults, the average spending on airfare was $49. But this year, that number declined to $32.
Morning Consult notes that when it comes to vacations, consumers are “more likely to trade down” and choose cheaper alternatives rather than paying elevated prices.
Hotels
Change in real spending in this category between April 2022 to April 2023: 33% decrease
In addition to cutting back on airline expenditures, Americans slashed another travel cost — hotel bookings.
In April 2022, the average American spent $79 on hotel expenses. This April, that amount dropped to $53.
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Education
Change in real spending in this category between April 2022 to April 2023: 26% decrease
Americans aren’t just trimming spending on luxuries: The amount they spend on education also is falling.
In April 2022, Americans spent an average of $66 on education costs. That amount declined to $49 this past April.
Other categories
Other categories where spending decreased at least 10% year over year are:
- Vehicle insurance: 20%
- Telecom: 15%
- Personal care services: 14%
- Restaurants: 12%
- Housing: 11%
- Apparel: 10%
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