March 7th, 2023
MassMutual Consumer Spending & Saving Index: Is optimism replacing fear as Americans navigate today’s economy?
Springfield, Mass., March 7, 2023 – In contrast to last quarter, ongoing uncertainty about the trajectory of the U.S. economy has not dampened many Americans’ optimism about their financial futures despite rising interest rates, persistent inflation, and stock market volatility according to this quarter’s Consumer Spending & Saving Index from Massachusetts Mutual Life Insurance Company (MassMutual).
“It is uplifting to see a spirit of resilience amongst the American population despite a softening in the U.S. economy and corresponding financial uncertainty,” said Mike Fanning, head of MassMutual U.S. “Staying vigilant by practicing sound financial habits is key to navigating this stubborn inflationary environment. Consumers who have already taken steps to save and invest wisely may be best positioned.”
Other key findings of the MassMutual Consumer Spending & Saving Index include:
Americans are more optimistic about the U.S. economy.
Older generations are more optimistic about their financial future than younger generations.
Nearly half of Americans said they would be able to pay a surprise bill of $400 easily, however, younger generations would have the most difficulty in affording this expense.
As tax season approaches, fewer Americans are anticipating receiving a tax refund, possibly due to the expiration of the Advance Child Tax Credit and COVID-19 stimulus programs.
One third of younger generations (Gen Z, Millennial and Gen X) reported that they do not contribute to a retirement plan every month.
“Making good financial decisions can start at any age, and those who start when they’re younger may have more options available to them and be in better financial health over the longer term. Whatever you do, be informed and be thoughtful about your choices,” added Fanning.
MethodologyThe MassMutual Consumer Spending & Saving Index tracks financial outlooks and behaviors in a changing economic environment. It offers an in-depth snapshot of people’s saving and spending behaviors and examines sentiment and attitudes toward navigating the financial impacts of the pandemic and the changing state of the economy with an emphasis on inflation, changes in interest rates and spending. Commissioned by MassMutual, the research was conducted online by PSB Insights from February 2-16, 2023, among a nationally representative sample of 1,000 U.S. adults (ages 18+) as well as an additional sample of 500 adult Massachusetts residents.