Here’s a barometer of these uncertain times: Roughly one in five Americans say they are engaged in so-called “doom spending” — purchasing items excessively or impulsively in response to fears or anxiety about future events. That’s one of the major conclusions of the latest survey on consumer sentiment by creditcards.com, which drew 2000 responses through Pollfish earlier this month.
Much of that spending stems from uncertainties about the impact of President Donald Trump’s planned tariffs.
“Researchers at S&P Global estimate the new tariffs could trigger a one-time increase of 0.5% to 0.7% in U.S. consumer prices, assuming the tariffs remain in effect through 2025,” says John Egan, credit cards, insurance and personal finance expert contributor for CreditCards.com. “But it’s too soon to say precisely how the new tariffs imposed by President Trump are affecting consumer spending. However, they very well could cause some consumers to rethink their buying habits, especially when it comes to major purchases.”
Here’s a bit of drill down into the “doom spending” numbers: it consists of 5% of respondents saying they would definitely use that label to describe their spending patterns, while another 13% say they are 13% say they are probably doing so.
Some other findings from the survey
- 30% of Americans say they are purchasing items in preparation for another pandemic, possibly from avian influenza A (H5N1).
- 42% of Americans are or will start stockpiling items, mainly food and toilet paper.
- The most stockpiled items include non-perishable food (76%) and toilet paper (72%). Nearly half (49%) stocked up on medical supplies, and 44% purchased over-the-counter medications. Smaller portions secured water-filtration systems (21%), home goods or appliances (23%), personal care products (25%), or firearms and ammunition (15%).
Click here for more from the survey.