Table of Contents
Executive Summary
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- Top takeaways
- Despite economic challenges, nearly half of consumers still believe they will be financially better off
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- Figure 1: Opinions on financial future, 2022
- Travel remains a goal for 43% of consumers heading into summer
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- Figure 2: Future spending behaviors, 2022
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- Figure 3: Klarna travel email, 2022
- Figure 4: Affirm and Vrbo partnership, 2022
- Leisure activities, clothes the top two nonessential category consumers would cut back spending on
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- Figure 5: Changes consumers would make due to inflation, 2022
- Figure 6: Capital One Shopping email, 2022
- Market overview
- Opportunities and challenges
- Stagflation: a plausible risk
- Building off the goodwill earned during the peak of the pandemic
- Key consumer insights
- Those feeling the inflation squeeze the hardest are the most pessimistic about their financial futures
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- Figure 7: Opinions on financial future, by income, 2022
- Figure 8: Inflation and wage growth, 2019-22
State of the Economy
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- Economic overview
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- Figure 9: Key economic indicators, 2022
- Unemployment remained steady at 3.6% for the fourth consecutive month
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- Figure 10: Unemployment and underemployment, 2007-22
- Consumer sentiment plunged to a record low of 50
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- Figure 11: Consumer Sentiment Index, 2007-22
- The Consumer Price Index surged to 9.1% for the 12 months ending in June – A 40-year high
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- Figure 12: Consumer Price Index change from previous period, 2007-22
- DPI dropped by 3.35% for the 12 months ending May
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- Figure 13: Disposable Personal Income change from previous period, 2007-22
- Personal saving rate hitting its lowest rate since September 2008
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- Figure 14: Personal Saving Rate, seasonally adjusted, 2007-22
Consumers and the Economic Outlook – Fast Facts
Change in Financial Situation
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- Consumers are slightly worse off than they were back in November 2021
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- Figure 15: Change in financial situation in the past 12 months, 2022
- Retired adults saw the largest decline in their financial situations between November and May
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- Figure 16: Change in financial situation in the past 12 months, by employment status, 2021 and 2022
Financial Situation Recovery
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- A quarter expect to financially recover in less than a year
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- Figure 17: Expectations for financial recovery, by financial situation, 2022
Past Spending Behaviors
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- Travel spend saw an expected decline going into an off-peak season
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- Figure 18: Past spending behaviors, 2022
- Higher-income households added to their savings the most in the past three months
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- Figure 19: Top three past spending behaviors, by income level, 2022
Changes Consumers Would Make Due to Inflation
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- Slashing spending on dining out and clothes are the top two ways consumers plan on stretching their dollars amid rising inflation
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- Figure 20: Changes consumers would make due to inflation, 2022
- Financially healthy households the least likely to compromise amid inflation surge
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- Figure 21: Changes consumers would make due to inflation, by financial situation, 2022
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
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