Zinger Key Points
- A Benzinga survey shows that inflation is still a major concern for consumers.
- Consumers could spend less money on items like fireworks and alcoholic beverages for their Fourth of July celebrations.
The economy and inflation continue to be key topics for Donald Trump and President Joe Biden to address when discussing the 2024 presidential election.
Ahead of the Fourth of July holiday, Benzinga polled readers to get a gauge on how inflation is compared to last year.
What Happened: The Fourth of July holiday will see millions of Americans celebrate Independence Day with get-togethers with family and friends and in some cases, mark the tradition with fireworks.
Benzinga asked readers how the 2024 Fourth of July compares to the previous year.
"Ahead of Fourth of July, how do you feel compared to last year?" Benzinga asked.
The results were:
Richer: 35%
Poorer: 35%
About the Same: 31%
Benzinga also asked directly about inflation compared to the previous year. These were the results:
Better Than Last Fourth of July: 25%
Worse Than Last Fourth of July: 48%
About the Same as Last Fourth of July: 27%
Ahead of the holiday, Benzinga asked if consumers would consider buying less of any common items associated with the Fourth of July. Consumers said they would buy less of the following products, with multiple answers allowed:
Fireworks: 44%
Alcoholic Beverages: 36%
Barbecue Meats: 32%
Desserts: 30%
Fruits & Vegetables: 23%
No, I'll Be Buying Everything as Planned: 37%
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Why It's Important: The survey results show that almost half of consumers think inflation will be worse in 2024 than in 2023.
Consumers look ready to still spend on top items for the holidays, but 44% are likely to cut back on fireworks for the holiday. Consumers also appear ready to cut back on alcoholic beverage spending for the holiday, which could impact beer stocks like Anheuser-Busch InBev BUD.
Overall, lower consumer spending for the holiday could have an impact on retail stocks such as Walmart Inc WMT, which often does sales and promotions based on holidays.
In May, the Personal Consumption Expenditure showed a decline. The PCE fell from 2.7% year-over-year in April to 2.6% in May. The figure is one of the preferred measures of inflation for the Federal Reserve.
The economy is the biggest topic on voters' minds ahead of the 2024 election, according to a Morning Consult poll of nationally registered voters.
Benzinga asked what topics readers most wanted to hear from Trump and Biden in the first presidential debate. The economy and inflation won with 50%, ranking significantly ahead of immigration (31%), Ukraine/Gaza Wars (13%) and Bitcoin/Crypto (6%).
The study was conducted by Benzinga on July 2 and July 3 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 119 adults.
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Photo: Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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