Morgan Stanley Research Report: Willingness of U.S. consumers to spend on electronic goods hits new low, high-income group drops by 18 percentage points.

Recently, Morgan Stanley released an in-depth research report on consumer electronics spending in the United States, revealing that under the current economic situation, American consumers' willingness to spend on consumer electronics products has significantly decreased, and the future market outlook is not optimistic. Among them, the spending of low-income groups decreased by 3 percentage points to -18%, while the high-income group decreased by 18 percentage points to -9%. According to Morgan Stanley's latest AlphaWise consumer survey, American consumers' view on the economic outlook deteriorated significantly in June, and spending willingness has dropped to pre-tariff lows. Data shows that 10% of American consumers expect the US economy to worsen in the next six months, a decrease of 4 percentage points from May. It is worth noting that high-income consumers' pessimism about the economic outlook is most significant, with a decrease of 12 percentage points compared to the previous month. Although consumers' views on their financial situation have slightly improved, especially among low-income groups, this has not boosted the willingness to spend on consumer electronics products. Specifically regarding spending willingness on consumer electronics, in June, consumers' net spending willingness on consumer electronics products in the next month dropped by 2 percentage points to -3%, while PC net spending willingness dropped by 4 percentage points to -7%. Looking ahead to the next six months, the net spending willingness on consumer electronics products has declined even further, reaching 7 percentage points to -15%. Among them, the low-income group decreased by 3 percentage points to -18%, while the high-income group decreased by 18 percentage points to -9%. This data indicates that both low-income and high-income groups have weakened their willingness to spend on consumer electronics products, with the pessimism of high-income groups particularly notable. In addition, the impact of tariffs on consumer electronics spending should not be underestimated. The survey shows that 33% of respondents stated that due to tariffs, they expect overall spending to decrease in the next three months. Although this percentage improved by 3 percentage points from the May survey, the impact of tariffs is greater on middle and low-income consumers. Among consumers with annual incomes below $50,000, 33% said they would cut back on spending, while this percentage was as high as 37% among consumers with incomes between $50,000 and $100,000, and 27% among high-income groups. Morgan Stanley pointed out in the research report that the economic outlook of American consumers still remains uncertain, and it is expected that the market outlook for consumer electronics products in the next six months will become more challenging. This conclusion is supported by multiple data points including consumer sentiment, spending willingness, and the impact of tariffs. It is worth noting that Morgan Stanley's research report also includes a series of charts and data, such as a direct positive correlation between the economic outlook in the United States and the willingness to spend on consumer electronics in the next six months (correlation coefficient of 0.66), as well as comparisons between the University of Michigan Consumer Confidence Index and the AlphaWise consumer survey. These charts and data provide strong support for understanding the current situation and future trends in the American consumer electronics market. In summary, Morgan Stanley's research report reveals the serious challenges facing consumer electronics spending in the United States. Under the current economic situation, factors such as deteriorating consumer sentiment, decreasing spending willingness, and the impact of tariffs have combined to make the future outlook of the consumer electronics market uncertain. For relevant companies and investors, closely monitoring market dynamics and changes in consumer behavior, and developing flexible response strategies, are particularly important.