June financial sentiment shows an all time low with consumers rating their financial situation as “good” or “very good” at 47.5%–down from 48.8% in early June. Those feeling “neutral” about their finances has risen from 36.3% to 37.4% in the same timeframe. African-American households now feel the most positive in their financial situation across ethnicity with nearly half feeling “good” or “very good” in late June. Suburban households have rebounded in sentiment, while rural and low income households continue to drop in positive sentiment in June.
How do consumers feel about their finances?
What would consumers do with extra cash?
The most significant trend seen is those saying they “don’t currently have any spare cash,” which saw a steady increase throughout 2021 and has grown to a peak with 23.7% of households in mid July–driven by rural, Gen Z and low-income households.
For those who do have cash to spare, putting it into savings or paying down debts are the most popular options. Traveling intent has started to track up after a May stall–driven by high-income, Gen X and rural households. However, throughout June and July, low-income households are showing a significant pullback in saving and paying down debts in response to not having spare cash (up +4.1pp compared to mid-May).
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