Even though the economy is technically in a recovery, consumers say they will be cautious in their holiday spending.
According to a survey released Monday by CUNA and the Consumer Federation of America, 41% of respondents said they planned to spend less this year than last year, while 8% said they planned to spend more.
“The good news is that spending plans are stronger than they were at the worst stage of the recession in 2008,” CUNA Chief Economist Bill Hampel said in a statement. “The bad news is spending plans are still considerably below where they were before the recession.”
The organizations surveyed 1,011 adults earlier this month and found consumers were increasingly worried about the impact of the economy on their lives.
According to CUNA and the CFA, 37% of respondents said their financial situation was worse than last year, compared with 29% who responded that way in 2010; this year, 45% of respondents said they were worried about making their credit card payments, compared with 43% in 2020; and 45% said they were concerned about making all debt payments, compared with 43% last year.
Among households with annual incomes of less than $25,000, 13% said their financial situation had improved while 50% said it had worsened.
The survey found that in households earning between $25,000 and %50,000, 24% said their finances were improving and 33% said it was getting worse.
It’s the 12th annual survey by the two groups.