Investing.com — Client sentiment within the U.S. hit a three-year excessive in October, in accordance with Morgan Stanley’s newest AlphaWise survey, which tracked the spending intentions of U.S. shoppers.
The financial institution mentioned in a word Monday that the outcomes present growing optimism concerning the economic system, though spending plans for shopper electronics stay weak.
The survey, carried out between October 24 and 28, is claimed to have discovered that shopper confidence has elevated, with extra People reporting a optimistic outlook on the economic system than at any time since July 2021.
“US shoppers now have probably the most optimistic view on the economic system since July 2021,” the financial institution famous.
Morgan Stanley mentioned high-income households particularly felt an enchancment of their monetary outlook, whereas sentiment amongst different revenue brackets remained secure.
Nonetheless, they added that the outlook for shopper electronics spending heading into the vacation season is much less encouraging. The survey reportedly revealed a month-over-month drop in short-term electronics spending intentions, a metric that has traditionally risen in October as shoppers put together for Black Friday and Cyber Monday.
Particularly, internet spending intentions for electronics over the subsequent month are mentioned to have fallen to -7%, down from earlier years’ will increase.
In an additional signal of warning, Morgan Stanley says a internet 5% of shoppers plan to cut back spending on electronics in the course of the vacation season in comparison with final 12 months.
Within the medium time period, spending intentions have proven some enchancment, notably amongst higher-income households, but the info stays in destructive territory total, in accordance with the financial institution.
The subsequent six-month electronics spending outlook elevated by three share factors month-over-month to -12% however nonetheless displays restrained enthusiasm for main purchases.
As the vacation season approaches, the survey’s findings counsel that whereas shopper sentiment is bettering broadly, expectations for electronics purchases stay subdued.
Morgan Stanley’s analysts advise warning for retailers on this phase, as spending intentions have but to show constant optimistic momentum.
