Three-Quarters of Americans Making Plans for Dealing With Impending Recession: Poll

A shopping cart is seen in a supermarket as inflation affected consumer prices in Manhattan, New York City, on June 10, 2022. Andrew Kelly/Reuters

More than three-quarters of American citizens are planning out steps to deal with a potential economic recession, results of the latest Bankrate poll show.

While 69 percent of survey respondents were “worried” about the possibility of a recession before the end of 2023, 40 percent were “somewhat worried” about the possibility and 29 percent were “very worried,” according to the poll. If a recession begins before the end of 2023, 41 percent said they would be unprepared to deal with it. The majority of Americans, 74 percent, stated that they are taking steps to prepare for the downturn.

A smaller group of Americans, 31 percent, are “not worried” about a recession next year, with 21 percent “not too worried” about it.

Among women, 74 percent were worried about the potential recession. This number was at 65 percent for men. Millennials and Generation X were found to be worrying more about recession than Generation Z and baby boomers.

Among respondents who are taking steps to prepare for a recession, the most common method included spending less on discretionary purchases, with 47 percent agreeing to it.

This was followed by saving more on emergencies, at 35 percent; paying down credit card debt, at 30 percent; looking for a stable or additional income, at 24 percent; and saving more for retirement, at 19 percent.

“While some Americans indicate they believe the economy is already in a recession, it is perhaps more important that so many are already taking actions based on their fears or beliefs that one is inevitable over the next year or so,” Mark Hamrick, Bankrate senior economic analyst and Washington bureau chief, said in a statement.

U.S. Recession

The U.S. economy contracted by 0.9 percent in the second quarter, following a 1.6 percent decline in the first quarter. Some experts see two consecutive quarters of gross domestic product (GDP) fall as a sign of recession. However, the National Bureau of Economic Research (NBER), a private nonprofit research organization that officially announces a recession, has not yet declared it, as of now.

Jamie Dimon, the CEO of JPMorgan, has warned about an incoming economic “hurricane.” In a note to clients a couple of weeks back, he predicted a 40 percent chance of a hard recession or “something worse,” according to Reuters.

In an interview with Bloomberg on Aug. 15, economist Nouriel Roubini pointed out that the American economy only has two paths in front of it: a long and harsh recession or uncontrolled inflation.

“In the United States, whenever you had inflation above 5 percent and unemployment below 5 percent, the Federal Reserve tightening has led to a hard landing,” Roubini said. The 12-month Consumer Price Index (CPI), a measure of annual inflation, was at 8.5 percent in July, while the unemployment rate is at 3.5 percent.