Half of middle-class consumers believe the United States has entered into a double-dip recession and are adjusting their lifestyle by saving money and cutting spending.
According to the First Command Financial Behavior Index, almost three quarters of the consumers who believe the United states is in a double-dip recession say they are living more frugally. There out of five respondents who already consider themselves to be frugal are nonetheless looking for new ways to save money anyway.
Data from the survey shows a significant difference between those who believe we’re in a double-dip recession and those who don’t. For instance, 48% of respondents who believe in the double-dip have increased their use of coupons, compared to 41% of those who don’t. The same gap can be found in those who are reducing travel (43% versus 34%); buying generic instead of name brand (40% versus 29%); shopping at discount stores (50% versus 37%) and cooking at home more often (53% versus 43%).
So while there has not been an official declaration of a double-dip recession, and many economists doubt it will happen, the fact that a number of consumers are living like we are in one can be seen as a silver lining in an otherwise difficult economic climate, according to Scott Spiker, CEO of First Command Financial Services.
“People got a very severe wake up call from 20 years of overconsuming and I think many are still sleeping uneasy right now from two years ago,” he said. “How severely an individual is looking at their diagnosis predicts how hungry they are for a prescription. People are looking for fundamental changes.”