As the peak holiday shopping season approaches, most U.S. consumers have a downbeat outlook on the economy, according to an annual Deloitte survey published on Wednesday.
Most consumers surveyed — 57% — said they expect the economy to weaken in the year ahead, the consulting firm found in a poll of roughly 4,000 respondents. That compares to 30% who expected a weaker economy ahead of the year-ago holiday season and 54% in 2008, one of the years of the Great Recession.
It marks the most negative economic outlook since Deloitte began tracking that in 1997.
Seventy-seven percent of people surveyed said they expect higher prices on holiday items, up from 69% last year, according to Deloitte. It’s the first holiday season since President Donald Trump’s latest wave of tariff hikes on many imports.
“We’ve been talking about the resilient consumer for a while now, that despite all these pressures, the U.S. consumer continues to spend and we keep seeing growth and spending for retail,” said Brian McCarthy, retail strategy leader for Deloitte. “This outlook is starting to suggest that we’re getting towards the end of that resilience.”
