December 16, 2022Against a turbulent economic backdrop, McKinsey’s latest Consumer Pulse Survey shows an array of shifts in consumer sentiment and behavior that present challenges for employers.
Twice as many US consumers are pessimistic about the economy now compared to the start of the pandemic and cash savings in low-income households are starting to run out. In Europe, consumer pessimism was at 22 percent in May of 2020. Now, it’s at 43 percent. On both continents, consumers are trading down and reducing or delaying discretionary purchases.
But these times also hold significant opportunities for employers, particularly during the holiday season, where middle- and high-income consumers plan to spend big, despite holding on to savings recently.
We spoke to three McKinsey Growth Marketing & Sales leaders to better understand how these shifts are impacting companies and break down how to respond to these disruptions and prepare for the future.