Consumer plans for electronics purchases dip amid mixed sentiment: survey

Investing.com -- U.S. consumers are pulling back on plans to buy electronics, according to Morgan Stanley’s latest AlphaWise survey, as sentiment around the economy remains mixed and cautious spending persists across income levels.

In June, net consumer electronics spending intentions for the next six months fell by 7 percentage points month-over-month (M/M) to -15%, returning to pre-tariff lows, the survey showed.

Morgan Stanley highlights that both lower-income and high-income households showed reduced willingness to spend, with high earners posting the steepest monthly decline since January 2024.

Near-term sentiment also softened. One-month forward spending intentions for electronics slipped 2 points to -3%, while PC spending intentions dropped 4 points to -7%. These results reflect a reversal of the modest gains recorded in May.

While the overall view of the economy deteriorated—net 10% of respondents expect it to worsen over the next six months—there was a slight improvement in consumers’ view of their household finances.

This modest uptick was concentrated among lower-to-mid income respondents and remained well below levels seen in the second half of 2024.

On the macro front, tariffs remain a headwind for consumer behavior. To be specific, the survey found 33% percent of respondents said they plan to spend less over the next three months due to tariffs, though that figure has improved modestly from earlier in the year.

The impact remains more pronounced among those earning less than $100,000 annually. “Tariffs are having an outsized impact on lower-to-mid income consumers who are more cost sensitive,” analysts led by Erik W. Woodring wrote.

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Overall, Morgan Stanley described the June survey results as “mixed to negative and consistent with the uneven consumer backdrop that has persisted most of 2025.”

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