Bankrate Survey Finds Nearly 7 in 10 Americans Worried About Possible Recession and Taking Steps to Prepare

Aug 29, 2022Financial Literacy, News

A recent survey found that nearly 7 in 10 U.S. adults admit they are worried about a possible recession by the end of next year. 29 percent of people are very worried about the possibility of a recession, and 74 percent are actively preparing for an economic downturn.

“While some Americans indicate they believe the economy is already in a recession, it is perhaps more important that so many are already taking actions based on their fears or beliefs that one is inevitable over the next year or so,” said Mark Hamrick, senior economic analyst.

41 percent of those surveyed say they are unprepared for a recession, and although 59 percent consider themselves prepared, only 17 percent of those say they are very prepared. Many Americans say they are preparing for a recession by spending less on discretionary purchases (47 percent), saving more for emergencies (35 percent), or paying off credit card debt (30 percent).

“With about half of consumers saying they’re cutting back on discretionary purchases, that alone weighs on economic activity, making a contraction more likely. Fortunately, we’re seeing some constructive developments including saving more for retirement and for emergencies and paying down credit card debt,” Hamrick said.

Groups that are more likely to worry about a recession include women at 74 percent, Republicans and independents at 74 percent each, and millennials and Gen Xers at 73 percent and 72 percent respectively. Women, Gen Z, minorities, lower earners, and the less educated were more inclined to feel unprepared for a possible economic downturn.

Additionally, 70 percent of U.S. adults do not think inflation will have gotten any better a year from now, including 20 percent who think it will be about the same and 51 percent who think it will be worse. Only 16 percent think inflation will go down, and 14 percent said they don’t know.

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