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October 04, 2022 at 04:35 PM
What You Need to Know
- Consumers fear a recession is imminent, leaving them feeling unprepared when it comes to their personal finances, according to a recent Nationwide survey.
- More than half of survey respondents reported that inflation/rising living costs have negatively affected their mental health.
- In response to concerns about losing their job, consumers are cutting expenses, including insurance coverage.
U.S. consumers are feeling vulnerable as they perceive that the worsening economy is negatively affecting their personal finances, mental health and job security, according to survey results released Tuesday by Nationwide.
Consumers fear a recession is imminent, leaving them feeling unprepared when it comes to their personal finances.
Three-quarters of survey participants rated the current U.S. economy as poor or fair, and 53% said the same about their own situation.
The survey, which was fielded just ahead of the latest Federal Reserve interest rate increase, also showed that 68% of consumers expect rates to rise in the coming months. And 64% of respondents, including 69% from Generation Z, anticipate that inflation will increase.
Two-thirds of consumers said they expect the U.S. economy to be in recession in the next six months, and 55% expect the U.S. stock market to decline further. Against this backdrop, only 37% said they feel prepared to weather a recession.
Edelman Data & Intelligence conducted a 15-minute quantitative online survey between Sept. 6 and Sept. 22 among a sample of 2,000 nationally representative consumers, including 200 Gen Zers, 401 small-business owners, 408 middle-market business owners and 401 agents.
Inflation, Cost of Living Weigh on Consumers’ Minds
The survey also revealed specific economic pressures that are worrying consumers. Seventy-seven percent said they are concerned about inflation and rising living costs, and 71% said the same about a possible recession and economic downturn in the U.S.
Sixty-six percent of respondents believe that their personal financial situation has been hurt by inflation/rising living costs, and 49% by the uncertain economic environment over the past six months.
