Morgan Stanley survey shows electronics spending intentions are worsening

Investing.com -- A new Morgan Stanley survey indicates that U.S. consumer intentions to spend on electronics have weakened, even as overall sentiment improves.

Analyst Erik Woodring wrote in a note to clients that the January AlphaWise Consumer Survey, conducted from January 22–26, shows consumers becoming more positive about the economy and their household finances, but “electronics spending intentions worsen.”

Consumer sentiment metrics increased by seven points month-on-month for the economy and ten points for household finances, reaching -6% and +22%, respectively.

Morgan Stanley noted that this represented “the largest survey-on-survey uptick in seven months” for economic sentiment and the largest since 2023 for household finances.

However, this optimism contrasts with a decline in next-month spending intentions for consumer electronics and PCs, and a deterioration in six-month electronics spending expectations.

Specifically, the survey found one-month forward net spending intentions fell to -2% for consumer electronics and -7% for PCs, while six-month intentions dropped to -11% from -7% in November.

Lower-income households reportedly showed a 5-point decline to -21%, and higher-income households saw intentions fall 11 points to -12%, putting spending plans “close to in-line with March 2025.”

Woodring also noted that tariffs appear to have minimal impact on spending decisions, with only a net 5% of respondents expecting to reduce purchases in response to tariffs.

Morgan Stanley concluded that, despite improving sentiment, consumer electronics spending is showing early signs of moderation, highlighting potential headwinds for the sector in the coming months.

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