US millionaires are slashing their holiday spending as a result of soaring inflation, which they see as a major risk to the economy and their personal wealth, a CNBC survey has found.
According to the outlet, 80% of millionaire respondents — those with investible assets of $1 million or more — said they plan to spend less this holiday season due to inflation. Millennial millionaires are the most likely to cut back, with 100% saying they plan to spend less, compared with 78% of baby boomers.
When asked about how they’re responding to inflation, a majority of millionaires (52%) explained they are “more price conscious” when shopping and a third said they are dining out at restaurants less often.
“They’re becoming more cautious about how they’re spending their money,” said George Walper, president of Spectrem Group, which conducted the Millionaire Survey with CNBC.
Inflation in the United States hit 40-year highs this summer pushed up by soaring prices. Official data shows the rate has slowed down since then, with the consumer price index settling at 7.1% in November, down from a 7.7% gain in the previous month.
The CNBC research pointed out that while inflation has impacted the millionaires’ spending, they are split when it comes to making changes in their investment portfolios. When asked about that, 29% reported they have already made changes, while another 11% said they are just planning to do so. Nearly a third (30%) said they “might or might not” make changes, and 31% said they are not planning any changes.
According to Walper, millionaire investors are keenly aware of the impact of higher rates on their investments and the need to shift their portfolios, but they are uncertain about what exact actions to take.
“They’re not sure where they should make changes,” he explained, adding: “People don’t want to try to market time.”
The CNBC Millionaire Survey was reportedly conducted online in November, with a total of 761 people polled.