Recent reports have pointed to a pervasive sense of pessimism among Americans regarding the economy and their own financial position. This is despite positive indicators such as a strong labor market and a thriving economy. To better understand the reasons behind this persistent pessimism, researchers at Numerator, a data and technology firm, conducted a study analyzing the spending behaviors of 150,000 customers from 2019 to 2024. They also surveyed a representative sample of over 4,500 individuals to delve into the factors driving this sentiment.
The findings revealed that while people are spending more and experiencing improved financial situations compared to pre-pandemic times, they are also facing increased challenges and feeling drained as a result. Furthermore, the disparity in spending habits between different income brackets has significantly widened since 2021. Those in the highest income bracket are noticeably outspending those in the lowest bracket, exacerbating feelings of being left behind among lower-income earners.
