Study: Economy Less Likely Affecting Millennials’ Shopping Habits

Millennials are less likely to spend less due to the economy, according to a consumer survey conducted by Prosper Insights & Analytics on behalf of the National Retail Federation.

Its April Consumer Survey showed that 89.5 percent of young adults feel the economy is affecting their spending plans in some way, but not greatly.

“Despite having a higher unemployment rate, 18- to 24-year-olds are less likely to pull back their spending due to the economy,” said Dianne Kremer, senior analyst at Prosper Insights & Analytics. “Being less likely to carry the financial burden of a mortgage or the responsibility of children, coupled with being happier with the current administration in Washington, young adults are significantly more likely to have a ‘live for today’ mentality when it comes to opening their wallets. Though it’s uncertain, these consumers remain more confident in the future health of the U.S. economy.”

A few key statistics of how millennials compare with the average adult when it comes to how the economy is affecting their spending plans is below:

• Half of millennials polled said they are spending less as a result of the economy, slightly less than the 56 percent of average adults.
• One-quarter of millennials are spending time finding the best deals online, slightly less than the three out of 10 Americans overall.
• Discount stores aren’t the highest on young adults’ list of ways to save; 16 percent say they are frequenting discount stores more often, compared to more than one-quarter of average adults.
• One-third say the state of the economy is driving them to use coupons more often, but that’s less than the 42 percent of other bargain-hunting adults.