Early May financial sentiment shows a continued downturn from 2021 highs. Consumers rating their financial situation as “good” or “very good” is at a low of 49.9%– down from 52.3% in early April. Those feeling “poor” or “very poor” about their finances has risen from 11.6% to 14.5% in the same timeframe.
- Urbanicity: In summer 2021, suburban households had a significantly more positive sentiment towards financial situations as “good” or “very good” compared to urban households. More recently, the difference has grown smaller with suburban households dropping by 9 points and rural households staying steady.
- Generation: Gen Z is feeling the most significant financial squeeze compared to other generations. Only 40% of Gen Z’ers rate their current financial situation as “good” or “very good,” 10 points lower than Millennials & Gen X, and 12 points lower than Boomers+.
- Ethnicity: White consumers feel the most confident in their finances, and are the only racial group with more than half consistently rating their financial situation as good or very good. Black/African American consumers saw a significant increase in financial confidence in early May, but this has since dropped.
- Income Level: Low income consumers (those making under $40k annually) rate their finances lowest; fewer than 1 in 3 consider their current situation “good” or “very good,” half that of high income consumers.