Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: US context
- Economic and other assumptions
Executive Summary
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- Top takeaways
- The US economy continued to improve throughout 2021, as did the financial situations of 40% of consumers
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- Figure 1: Change in financial situation in the past 12 months, 2021
- Despite surging inflation, consumers still plan to put their money to use
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- Figure 2: Future spending behaviors, 2021
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- Figure 3: Klarna holiday ad, 2021
- Figure 4: Amex Plan It promotional email, 2021
- Lowering nonessential spending and discount hunting are how over half of consumers plan to combat inflation
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- Figure 5: Changes consumers would make due to inflation, 2021
- Figure 6: Capital One Shopping email, 2021
- Market overview
- Opportunities and challenges
- Supply chain and labor shortages could undermine economic recovery going into 2022
- Inflation remains key to the state of the US economy heading into 2022
State of the Economy
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- Economic overview
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- Figure 7: Key economic indicators, 2021
- Unemployment fell to 3.9% as rates continue to improve month after month
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- Figure 8: Unemployment and underemployment, 2007-21
- Consumer sentiment rebounded in December despite inflation concerns
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- Figure 9: Consumer Sentiment Index, 2007-21
- Consumer Price Index surged to 6.8% for the 12 months ending November 2021
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- Figure 10: Consumer Price Index change from previous period, 2007-21
- Disposable personal income fell for a third straight month
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- Figure 11: Disposable personal income change from previous period, 2007-21
- Personal saving rate fell to its lowest level since December 2019
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- Figure 12: Personal saving rate, seasonally adjusted, 2007-21
The Consumer – Key Takeaways
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- Most are optimistic about their financial futures going into 2022
- Nearly half of unemployed adults are worse off
- Higher-income households added most to their savings in the past three months
Opinions about Financial Future
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- Most are optimistic about their financial futures going into 2022
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- Figure 13: Opinions on financial future, 2021
- Multiculturals remain optimistic about their finances despite bearing brunt of the pandemic
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- Figure 14: Opinions on financial future, by race and ethnicity, 2021
Change in Financial Situation
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- Four in 10 consumers are financially better off than before
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- Figure 15: Change in financial situation in the past 12 months, 2021
- Nearly half of unemployed adults are worse off
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- Figure 16: Change in financial situation in the past 12 months, by employment status, 2021
Financial Situation Recovery
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- More than a third of financially struggling households expect to recover within one to two years
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- Figure 17: Expectation for financial recovery, by financial situation, 2021
Past Spending Behaviors
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- Domestic travel saw the most gains compared to earlier in the year
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- Figure 18: Past spending behaviors, 2021
- Higher-income households added most to their savings in the past three months
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- Figure 19: Top three past spending behaviors, by income level, 2021
Future Spending Behaviors
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- Consumers show appetite for spending amid holiday season
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- Figure 20: Future spending behaviors, 2021
Changes Consumers Would Make Due to Inflation
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- Over half would cut back on nonessential spending and seek out more discounts due to inflation
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- Figure 21: Changes consumers would make due to inflation, 2021
- Gen Zs and Millennials most likely to purchase more using credit amid rising inflation
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- Figure 22: Changes consumers would make due to inflation, by generation, 2021
Nonessential Categories Consumers Would Cut Back Spending On
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- Dining out, entertainment the top two nonessential categories most would cut back spending on
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- Figure 23: Nonessential categories consumers would cut back spending on, 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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