As the US economy continues to slowly recover, Americans are feeling better about their finances. According to a recent survey by Consumer Bankers Association, the number of Americans who reported feeling financially secure rose seven percentage points to 63 percent in the third quarter of 2020.
This is a notable improvement compared to a year ago, when only 50 percent of Americans reported feeling secure. In addition, the survey found that Americans reported increased financial optimism, with 40 percent of respondents saying they felt their financial situation would get better over the next year.
The Consumer Bankers Association’s survey also found that consumer sentiment regarding inflation rose. Seventy-eight percent of respondents said they either “somewhat agree” or “strongly agree” that inflation is not a health risk, up from 70 percent a year ago. This is a sign that consumers are more confident in the economy’s ability to weather the current economic downturn, as inflation tends to rise during times of economic growth.
The survey also revealed that 93 percent of Americans now believe that their financial situation today is better than it was a year ago. This is a sign that Americans are not only feeling more confident about the future but that their current financial situation has stabilized.
However, not everyone is feeling positive about the economy. The same survey found that 27 percent of Americans still believe that the economy will worsen in the next year. This is a sign that the recovery has been uneven, with some sectors faring worse than others.
As the US economy slowly improves, it’s clear that Americans are starting to feel better about their current and future finances. Though the recovery is far from finished, the survey suggests that most people are optimistic that their finances will continue to improve in the near future.