In the Numerator Consumer Sentiment Study for July, participants said they continued to keep a wary eye on the economy even as they modify purchasing strategies to meet their needs.
In the study, 70% of consumers polled in July said they were uncomfortable splurging on premium items, while 70% were uncomfortable taking money out of savings or retirement accounts and 57% were uncomfortable spending money on non-essential items.
Due to concerns about the economy and the impact of inflation, 39% of participants said they plan to cut spending on dining out and 37% said they plan to cut back on travel savings. On the other hand, 30% of participants said they don’t plan spending cutbacks.
Despite recent indications of moderating inflations as well as growth in the United States GDP, 56% of consumers have a high level of concern regarding the economy, up from 54% in June. A majority of participants, at 63%, said they feel as though the country is in an economic recession and 73% think inflation will increase over the next few months.
As they looked ahead over the next several months, 41% of study participants said their primary concern will most likely be personal finances, with 72% saying rising prices on essential goods and services are their main economic concern and 61% citing rising fuel prices as a top consideration. Other concerns include government scaling back benefits, cited by 31%, stock market stability, by 27%, housing market affordability, by 25%, and job security/unemployment, by 19%.
