A new survey conducted by the Federal Reserve found that a record high percentage of Americans believe that the economy has worsened in the past year. In fact, 35% of adults stated that they believe their living conditions will be worse off in 2022 than they are presently. This is the highest percentage recorded since the survey was first conducted in 2014.
According to the US Household Financial Well-being report, the economy is expected to decline significantly between 2021 and 2022. Of those surveyed, 73% responded that they are “at least okay” financially, which is down from the 78% who responded similarly last year. These figures are among the lowest observed since 2016.
Moreover, 54% of surveyed adults reported that their budgets have been greatly impacted by rising costs in the United States. Black adults, Hispanic adults, parents, and households with children under the age of 18 or individuals with disabilities are experiencing higher numbers in this regard.
A new poll has also found that only 24% of Americans believe that the country’s economy is doing well. Interestingly, spending among surveyed individuals in the month prior to the survey was lower than their incomes. This percentage has fallen in the past year and is below pre-COVID-19 levels.
The report released by the Federal Reserve states that “the decline in economic well-being from these measures shows how families have been impacted by the broader economic conditions in 2022, including inflation and stock market declines.” The findings highlight the need for a deeper understanding of the challenges facing individuals and families across the country.