scan for PancreaticThe financial services company found that 60% of Americans surveyed believe the U.S. economy is in recession.
The demand for economic recession is stronger in generation And the MillennialsBy 65% and 60%, respectively.
the Many children And the Generation Z They are not far behind, with 58% and 55% respectively having the same perception.
The perception of recession also extends to all income levels, equally affecting families earning less than $50,000 annually and those earning more than $100,000.
Do you feel that our economy is in a recession?
– Bankrate (@Bankrate) December 6, 2023
The US economy will improve, or so they expect
Economists paint a more optimistic picture of the U.S. economy now than a year ago, when inflation and rising interest rates predicted an economic recession.
Despite these expectations and consumer pessimism, the United States has shown a low unemployment rate, steady economic growth, and significantly reduced inflation.
In October, the Labor Department announced that the unemployment rate was just 3.9%, just 0.4 percentage points above pre-pandemic levels.
Additionally, the Commerce Department announced that the US economy grew at an annual rate of 5.2% during the third quarter.
59% of Americans feel the economy is in a recession. Americans of all generations and income levels have shared that they are struggling with finances because of the economy and have adjusted their financial habits in response. https://t.co/BpvRYGttLp
– Bankrate (@Bankrate) December 6, 2023
Inflation continues to fallThe recession is moving away
By October, inflation had fallen to 3.2%, from 9.1% the previous summer, although it was still above the Fed’s 2% target.
“Americans appear to be measuring the economy using different metrics than experts,” suggested Sarah Foster, a Bankrate analyst.
For the average American family, the ability to afford basic needs, entertainment, and save for emergencies and retirement takes priority over national growth statistics.
The current economy is taking a toll on Americans’ pocketbooks
The Bankrate survey also revealed that 66% of Americans believe the current economic landscape is negatively impacting their finances, and 64% are adjusting their financial habits in response.
“Americans evaluate the strength of the economy based on their personal financial experiences, and national numbers often do not reflect their financial reality,” Foster said.
