Table of Contents
Executive Summary
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- Top takeaways
- Despite gradual recovery, pandemic fatigue continues to grip consumers going into 2021
- A year into the pandemic, spending habits remain relatively consistent, with a slight focus on adding to savings in the future
- Consumers spend less on nonessential shopping, but staying home means higher grocery bills
- Market overview
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- Figure 1: Key economic indicators as of November 2020
- Opportunities and challenges to economic recovery
- Challenge: US adults need economic relief
- Opportunity: Consumers feel optimistic going into 2021
State of the Economy
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- Economic overview
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- Figure 2: Key economic indicators as of November 2020
- US unemployment continues to improve as the country opens back up
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- Figure 3: Unemployment and underemployment, January 2007-November 2020
- Consumer confidence remains unsteady amidst the pandemic
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- Figure 4: Consumer Sentiment Index, January 2007-November 2020
- DPI continues to decrease from record highs of past year
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- Figure 5: Disposable personal income change from previous period, January 2007-November 2020
- Personal saving rate down as economic activity picks back up
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- Figure 6: Personal saving rate, seasonally adjusted, January 2007-December 2020
- GDP increases by more than 30%
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- Figure 7: GDP change from previous period, Q1 2007-Q3 2020
Future Financial Situation
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- 4 in 10 consumers expect their financial situation to remain unchanged
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- Figure 8: Change in financial situation, November 2020
- Nearly half of unemployed adults are positive about 2021
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- Figure 9: Change in financial situation, by employment status, November 2020
- Black consumers are optimistic for 2021
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- Figure 10: Future financial situation, by race, November 2020
Negative Effects of the COVID-19 Pandemic
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- Larger grocery bills one of the top negative financial effects of the pandemic
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- Figure 11: COVID-19 negative impact, November 2020
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- Figure 12: Chase Freedom direct mail promotion, December 2020
- Unemployed and part-time workers hit the hardest throughout pandemic
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- Figure 13: COVID-19 negative impact, by employment status, November 2020
- Higher-income households unscathed by grim 2020
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- Figure 14: COVID-19 negative impact, by income level, November 2020
Positive Effects of the COVID-19 Pandemic
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- Less dining out a positive on consumers’ finances
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- Figure 15: COVID-19 positive impact, November 2020
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- Figure 16: Old Navy Afterpay email, seen November 2020
- Figure 17: Coach Klarna email, seen December 2020
- Consumers still worry about air travel amid global pandemic
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- Figure 18: Comfort level of certain behaviors due to COVID-19, January 2021
- COVID-19 positively impacted those with incomes the most
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- Figure 19: COVID-19 positive impact, by employment status, November 2020
Past Spending Behaviors
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- Overall spending cut back as consumers add to savings
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- Figure 20: Past spending behaviors, November 2020
- Figure 21: Past spending behaviors, by generation, November 2020
- Lower-income households continue uphill battle
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- Figure 22: Top three past spending behaviors, by income level, November 2020
Future Spending Behaviors
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- Saving more, spending less
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- Figure 23: Future spending behaviors, November 2020
- Major purchase appetite repressed in favor of home improvements
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- Figure 24: Spending behaviors – Past and future, November 2020
Opinions about Financial Future
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- Consumers remain resilient in the face of the pandemic
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- Figure 25: Opinions on financial future, November 2020
- Black consumers optimistic despite bearing the brunt of COVID-19
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- Figure 26: Opinions on financial future, by race, November 2020
Optimism for Financial Future
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- Over half of consumers bullish on being able to save more in 2021
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- Figure 27: Optimism regarding finances in 2021, November 2020
- Millennials and Gen X target paying off debt as 2021 resolution
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- Figure 28: Optimism regarding finances in 2021, by generation, November 2020
- Unemployed consumers expecting financial recovery in 2021
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- Figure 29: Optimism regarding finances in 2021, by employment status, November 2020
Pessimism toward Financial Future
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- 45% of consumers doubt they will be able to save more in 2021
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- Figure 30: Pessimism regarding finances in 2021, November 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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