A growing number of Americans are making impulse purchases driven by financial anxiety, according to a new report from CreditCards.com.
The research reveals that one in five consumers are engaging in ‘doom spending’ – buying excessively out of fear of economic instability, potential tariff increases, or another pandemic.
The report, based on a February survey, highlights that 25% of respondents have already made significant purchases since November due to concerns over new tariffs introduced by President Donald Trump, while 21% plan to do so soon.
Popular purchases include electronics, 39%, home appliances, 31%, and home improvement supplies, 25%. Some are also investing in furniture. 22% and vehicles 17%.
“It’s too soon to say precisely how the new tariffs imposed by President Trump are affecting consumer spending,” said John Egan, a personal finance expert at CreditCards.com.
“However, they very well could cause some consumers to rethink their buying habits, especially when it comes to major purchases. In addition, doom spending might lead you to pile up credit card debt, which could put you in a financial hole due to interest charges and fees.”
Stockpiling is another growing trend, with three in 10 Americans purchasing goods in preparation for another pandemic.
Meanwhile, 42% are either stockpiling or planning to start soon, with non-perishable food, 76%, toilet paper, 72%, and medical supplies, 49%, topping the list of commonly hoarded items.
Others are securing over-the-counter medications, 44%, water filtration systems, 21%, home goods or appliances, 23%, personal care products, 25%, and even firearms and ammunition, 15%.
The report also sheds light on how consumers are financing these purchases. Nearly a third, 28%, rely on credit cards for most transactions, while over a third, 34%, expect to accumulate more debt this year.
The survey, conducted on Feb. 13 via Pollfish, gathered responses from 2,000 US residents.
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