US Adults Brace for Economic Recession
According to the recently released “Planning & Progress Study” by Northwestern Mutual, approximately two-thirds of US adults, accounting for 67% of the population, hold the expectation that the economy will slip into a recession later this year.
Among those who foresee a recession, 33% believe it will be a short-lived downturn lasting a year or less, while 19% anticipate a more prolonged period of economic decline extending beyond two years. The study also revealed that three out of four individuals who anticipate a recession expect it to significantly or moderately impact both their immediate and long-term financial situations, with figures standing at 78% and 75%, respectively.
In response to the economic uncertainty, the study highlights the top three actions being taken by individuals to address the situation. These include implementing cost-cutting measures (64%), building up savings (50%), and deferring major expenses until the economy stabilizes (41%).
Christian Mitchell, the Chief Customer Officer at Northwestern Mutual, emphasized the importance of using uncertain times to evaluate and test financial strategies. He stated, “Consumers want assurance that their plans for wealth accumulation and lifestyles will remain intact even if the economy experiences a setback. Many are proactively preparing for any potential economic challenges that may arise.”
Furthermore, the report’s survey indicates that 60% of Americans are postponing their plans and purchases due to economic uncertainty. Additionally, 36% are delaying everyday expenditures such as dining out, buying new clothes, and attending events. The study also found that 29% are putting off significant purchases or projects such as home renovations or buying a new vehicle.
The survey involved 2,740 US adults aged 18 or older and was conducted online by The Harris Poll between February 13 and March 2.