Despite recent reports about improving economic conditions, only 30% of Gen Z consumers are optimistic about the economy’s direction relative to a year ago, concludes a new survey by SheerID, which provides identity verification services for business. As a result, Gen Z is shopping with increased frugality.
That’s especially true for Gen Z college students, the survey found, with just 22% stating they’re optimistic about the future of the economy while 71% plan to actively stretch their budgets and seek discounts.
“When asked how the current economy has changed their spending habits, groceries and mobile phone/wireless were the only two categories where Gen Z is spending more than they have in the past,” the report notes. “Take-out/food delivery, gaming, electronics and online news experienced the greatest pullback in spending, with 36% or more of Gen Z saying they are spending less in these categories.”
Respondents to the survey were 1761 people aged 18 to 26 (“Gen Z”) from the United States and the United Kingdom, half of whom are currently enrolled university students. The survey was fielded between March 1 and March 14, 2024.
Click here for more from the survey.