No Recession? Try Telling That to American Consumers

Experts contend that our economy isn’t yet in a period of recession. However, 86 percent of survey respondents confirmed that their family is feeling the effects of an economic downturn. Following are some additional results of Money Management International’s survey designed to measure consumer sentiment toward the current economic instability.

  • 91 percent of Democrats say they’re affected by recent conditions compared to 84 percent of Republicans.
  • Almost half (46 percent) of respondents defined recession as “when the cost of living rises,” signaling that, regardless of typical indicators like lack of economic growth or rising unemployment, consumers respond when things touch them personally.
  • Approximately one out of five people (19 percent) have already resorted to paying for necessities with credit.
  • 23 percent of surveyed consumers who are carpooling to work and driving less, in response to rising gas prices.
  • Only 24 percent of surveyed consumers said that they are coping with the economic downturn by adding money to their savings cushion.
  • When asked about the most extreme sacrifice they’d make if the economic downturn continues, nearly half of respondents (41 percent) indicated they would take on an additional job.

If you are feeling the effects of the economic downturn, read the Dolan’s Recession Survival Guide or Smart Moves for Tight Times at ConsumerReports.org. If you have tips for handling increasing costs, please share them through the comments section.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.