Recession Taking Emotional Toll, New Poll Finds
Thursday, April 2, 2009
Consumers are keeping their wallets in their pockets and feeling increasingly anxious because of the recession, according to a new Washington Post-ABC News poll. Many report putting off big-ticket spending that could benefit the hard-hit automotive and travel industries, while also cutting out everyday indulgences such as dining out.
"We have made a whole new budget," one respondent said. "We cut out anything that is unnecessary."
Cutbacks in spending remain widespread, with nearly two-thirds of consumers trimming the amount they buy and more than three in 10 sharply curbing their purchases. As one respondent said, "I don't spend it. I don't have it."
Optimistic views on the country's economic direction are on the rise, but those who say the economy is worsening continue to outnumber those who see it improving, 36 percent to 27 percent. And more than six in 10 Americans say they are stressed out over the nation's troubled economy, with a third reporting serious stress, up six points since last month.
Stress and pessimism about the economy are closely related, as almost four in 10 who said the economy is getting worse also said they are under deep stress. But even among those who said the economy is improving, a majority called it a source of stress.
So far, positive views on the economy appear to have had little impact on spending patterns. Among those who said the economy is getting better, 58 percent said they are cutting back.
Some have reached their limit. "There are no other ways I could cut back," said one poll participant.
A broad swath of Americans is putting off major spending, buffeting industries already battered by the recession. About four in 10 said that in the past six months they have delayed or canceled plans to purchase a new car or go on vacation, and about a third have put off spending on durable goods such as appliances.
Those in households with annual incomes under $50,000 were most apt to have trimmed major expenses; about half passed on a new car or delayed a vacation, and four in 10 skipped buying appliances.
The economic downturn is increasingly affecting the sentiments of those with the best prospects for future financial success: younger Americans and the better educated. Serious stress caused by the economy rose among those with college degrees, including a 14-point spike among those who have undertaken postgraduate studies. Those under age 30 are feeling it more deeply too, with 61 percent reporting that the economy is a cause of tension, up from 48 percent in February.
Those who said they are experiencing the deepest emotional toll are also the most apt to have cut back on spending. Overall, 63 percent said they have been cutting back spending lately, a slight decrease from last month, but the proportion who have sharply curbed their spending has held steady at 31 percent.
Nearly two-thirds have cut spending by eating out less, and just under half said they have reduced their charitable giving. Asked to cite other ways in which they are making ends meet, respondents said they were cutting the basics, the splurges and nearly everything in between.