This quarter’s BMO Real Financial Progress Index results show that Americans are increasingly concerned about rising consumer prices, inflation and a potential recession.
A total of 84% of Americans said they are worried about a recession hitting the end of the year. Over the past three months, nearly three-quarters (70%) of Americans said their concerns about inflation have increased.
More than 70% feel their financial momentum is threatened by higher food bills (78 %) and the increase in the cost of gasoline (70 %) . To prepare for a potential recession, 76% of Americans said they are making lifestyle changes, such as delaying major home purchases or a car, pay debts and reduce vacation expenses.
These findings come from BMO’s latest Real Financial Progress Index, which is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The quarterly survey was carried out from July 27 to 29 in August and was carried out by BMO and Ipsos.
Concerns vary significantly by generation. Older Americans report feeling more worried than younger generations. Between the 55 and the 64 years, the 82% said their concerns about inflation have increased in the last 3 months, compared to the 62% of those who have between 24 and 24 years and the 70% of those who have between 25 and 35 years .
According to the survey, Americans are not waiting to take steps to improve their financial situation in the event of a recession. Almost 8 out of every 10 Americans (76%) said they plan to adjust their lifestyle in response to recession concerns:
– He is delaying important purchases, such as buying a new house or a car.
– The 29% is paying debt.
– The 28% plan to cut back on vacation spending.
– The 24% is allocating more income to savings.
– The 14% Stay in a job you don’t enjoy.
Americans reporting being “much more” financially secure decreased to 39% from 50% a year ago and on 47 % in the last quarter.
Americans who said they felt “very less” financially secure increased to 27% from 16% in the same quarter of the previous year.
The number of Americans who said they are making financial progress decreased by 54 % from the 62 % a year ago.
More than 40% of Americans children under 35 years old do not have enough savings to cover an emergency.
“It is clear that Americans are feeling the brunt of inflation with recession concerns in mind, and now, many are going as far as postponing their home buying trip or buying a new car“, said Paul Dilda, Head of US Consumer Strategy for the BMO Financial Group.
“BMO’s findings only underscore what we know Here’s what’s crucial right now: everyone should look at their finances and develop a solid plan after talking with their banker or financial advisor. With the right advice and tools, people can continue to achieve their financial goals and progress financially through periods of inflation,” added Dilda.
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