World events cause growing concerns

The war in Ukraine, the Israeli-Palestinian conflict, and other world events have become increasing concerns for consumers, according to Numerator’s most recent Consumer Sentiment Study. World events was listed as a primary concern for 20% of respondents, an increase of 7% since September. Other results include

• 60% of consumers have a high level of concern regarding the economy, increasing slightly from September.
• 37% of consumers say that personal finances are their primary concern.
• 66% feel as though the country is in an economic recession, and 68% think the U.S. economy will worsen in the next few months. In addition, 75% think inflation will increase in the next few months.
• 75% cited rising prices on essential goods and services as their main economic concern, followed by rising prices on gas/fuel (67%, a 3-point drop since September).
• 72% are uncomfortable splurging on premium or luxury items, 71% are uncomfortable taking money out of savings or retirement accounts, and 57% are uncomfortable spending money on nonessential travel or vacations.
• In response to inflation and rising prices, consumers plan to cut spending on dining out (44%) and travel (37%).
• 26% do not expect to cut back on spending.
• Covid-19 concerns jumped in September and increased by another percentage point in October, with 25% of consumers reporting a high level of concern compared to 15% in August.