Nearly eight in 10 adults are making changes to their spending, including delaying large purchases, out of recession fears, according to a new report from financial services provider BMO Financial Group.
The latest BMO Real Financial Progress Index highlights the ongoing pressure Americans are facing because of inflation. A total of 84% of Americans said they are concerned about a recession occurring by the end of the year, and over the past three months, roughly three quarters (74%) of Americans said their concerns about inflation have increased. Between ages 55-64, 82% said their concerns about inflation have increased over the last three months, compared to 62% of those aged 18-24, and 70% of those aged 25-34.
With 76% of Americans adjusting their lifestyles in response to recession concerns, many are putting off major purchases like buying a home or car (34%), putting off paying down debt (29%), cutting back on holiday spending (28%) and more.
As well documented, buying more private brands has been one of the most common ways for Americans to save during the currently inflationary period. According to the data from BMO Financial Group, more than 70% of Americans feel their financial momentum is threatened by higher grocery bills (78%) and the high cost of gas (76%).