U.S. consumers and businesses have trimmed spending plans for gifts, charitable contributions and holiday events, data show. The penny-pinching threatens to spoil the year-end for many, especially firms and nonprofits that tally their largest share of sales and donations in November and December.

“We’re hopeful for a strong giving season, but we’re not counting on it,” said Thomas Tighe, chief executive of Direct Relief, a medical-assistance nonprofit that takes in around $2 billion a year in donated medicine, supplies and cash to deliver help around the world. …

Consumer prices have risen faster than wages this year, and high inflation has proved more persistent than many policy makers expected. The high cost of living has unnerved consumers, despite a strong job market, a cushion of household savings built up during the Covid-19 pandemic and a few signs that inflation is slowing.

The University of Michigan estimated that household sentiment in the past six months is comparable to late 2008 and early 2009, when the financial system verged on economic disaster and unemployment was soaring. The index also echoes wary levels of the 1970s, when inflation climbed to double digits.