New survey shows Americans expect to spend more on groceries, less on restaurants, eating out

ATLANTA — The economy is a top concern for voters ahead of Thursday’s presidential debate between President Joe Biden and former President Donald Trump.

Many indicators show the economy is improving, but that doesn’t always translate to how people feel about spending.

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Channel 2′s Linda Stouffer explained the recent change on Channel 2 Action News This Morning on Wednesday.

A survey by KPMG asked about 1,100 American adults about their spending habits. The majority said they plan to spend less on restaurants, travel, and entertainment.

“The best explanation, I think, is inflation,” said John Rosen, Adjunct Professor of Economics at the University of New Haven.

Many indicators that gauge the economy’s health show it’s improving. Unemployment is down and inflation is slowing.

But Rosen says it’s still higher than people are used to.

“That means in your everyday life you notice this,” said Rosen.

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The latest figures from the Bureau of Labor Statistics show food prices and housing costs increased last month.

“There’s a lot of psychological research as opposed to economic research that things like mortgage, or rent, utilities, gasoline, things like that, things that are basic necessities. People don’t enjoy that spending. They think of it very much like a tax,” said Rosen.

The Federal Reserve shows Americans’ net worth hit another record in the first quarter of 2024.

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