Inflation and a looming recession have left middle-class Americans feeling glum about household finances and the U.S. economy, a survey released Wednesday showed.
Seventy-five percent of Americans with incomes between $30,000 and $100,000 say their income is falling behind inflation, according to a survey by Georgia-based financial services company Primerica. That’s up from 67 percent as recently as March, indicating a dramatic surge in the number of middle-class Americans feeling burdened by inflation.
An even larger share—77 percent—say they expect the economy to enter into a recession by the end of this year. Sixty-one percent of these middle-income Americans say they expect the economy to be worse off a year from now. Just 14 percent say they expect it to be better.
Forty-one percent say that inflation is their top concern. Being able to pay for food is the top concern of 26 percent.
The drag of inflation on the broader economy can be seen in the spending plans of middle-class Americans. Seventy-one percent said they were cutting back on restaurant meals and takeout, up from 57 percent in March. Sixty-nine percent said they are planning on keeping existing technology instead of upgrading in order to save money, up from 44 percent in March. Forty-nine percent said they plan on cutting back on spending on groceries, up from 37 percent in March.
More than one third—38 percent—said they had already delayed a major purchase due to rising interest rates. In June, the Federal Reserve announced a 75 basis point hike in its interest rate target, the biggest since 1994.
Seventy-two percent said that their ability to save for the future was poor or not so good, up from 67 in March.
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