No Recession? Try Telling That to American Consumers

Experts contend that our economy isn’t yet in a period of recession. However, 86 percent of survey respondents confirmed that their family is feeling the effects of an economic downturn. Following are some additional results of Money Management International’s survey designed to measure consumer sentiment toward the current economic instability.

  • 91 percent of Democrats say they’re affected by recent conditions compared to 84 percent of Republicans.
  • Almost half (46 percent) of respondents defined recession as “when the cost of living rises,” signaling that, regardless of typical indicators like lack of economic growth or rising unemployment, consumers respond when things touch them personally.
  • Approximately one out of five people (19 percent) have already resorted to paying for necessities with credit.
  • 23 percent of surveyed consumers who are carpooling to work and driving less, in response to rising gas prices.
  • Only 24 percent of surveyed consumers said that they are coping with the economic downturn by adding money to their savings cushion.
  • When asked about the most extreme sacrifice they’d make if the economic downturn continues, nearly half of respondents (41 percent) indicated they would take on an additional job.

If you are feeling the effects of the economic downturn, read the Dolan’s Recession Survival Guide or Smart Moves for Tight Times at ConsumerReports.org. If you have tips for handling increasing costs, please share them through the comments section.