Economic sentiment recoups past two month’s losses

Consumer confidence rises above pandemic average for the first time since early February

The author(s)
  • Nicolas Boyon Senior Vice President and Ipsos Global Advisor Lead
  • Catherine Morris Data Journalist, US, Public Affairs
  • Johnny Sawyer Senior Research Manager, US, Public Affairs
  • Hailey Foster Research Analyst, Public Affairs
Get in touch

Washington, DC, April 7, 2022 – Economic sentiment continues its rebound. Ipsos-Forbes Advisor U.S. Consumer Confidence Tracker is up 1.9 points from two weeks ago to now read at 55.4. This rebound is most marked in the Investment and Current sub-indices, amid a recent market rally. The uptick in consumer confidence corresponds with improvement in President Biden’s approval rating.

However, the greatest gains in investment sentiment are driven by more affluent Americans, or those making $100k or more (+4.5) points. Meanwhile, sentiment among those earning $50k or less shifted less than one point.

With inflation on the rise over the last few months, majorities of Americans still report that they spend, borrow, and save as much as usual. As a sign that Americans are exercising caution, fewer say they spend money, borrow money/use credit, draw from their savings, invest/save money, and pay off their debts more than usual than say they do so less than usual.


Read the full story from Forbes Advisor here.

Learn more about the Ipsos Global Consumer Confidence Index and sub-indices via the interactive portal, Ipsos Consolidated Economic Indicators (IpsosGlobalIndicators.com) including graphic comparisons, trended data and all the questions on which they are based.


Detailed Findings

1. Scoring at 55.4, the latest Overall Consumer Confidence index gains 1.9 points from two weeks ago.

  • The Overall Confidence Index is currently 1.6 points above the pandemic average, and 4.7 points below where it stood in early March 2020, prior to the first lockdowns (60.1).
Line graph showing overall U.S. consumer confidence which reads at 52.5 this week.

2. The Current and Investment sub-indices gain a meaningful 2.8 and 2.5 points respectively from two weeks ago. Meanwhile, the Expectations and Jobs sub-indices are more stable, lifting just 1.2 and 1.1 points respectively.

Table showing comparisons of each index current reading to various points in time or averages.

 

3. Jobs sentiment is strong as Americans express continued confidence in their job security.

  • The proportion of Americans who say they are more confident in their job security now compared to 6 months ago is at 54%, up 4 points from two weeks ago.
  • The proportion of Americans reporting they, a family member, or a personal acquaintance lost their job in the past six months due to economic conditions is at 25%, unchanged from two weeks ago.
  • In addition, 35% say it’s at least somewhat likely that they, a family member, or a personal acquaintance will lose their job in the next six months due to economic conditions, down 3 points from two weeks ago.

4. Most Americans report that their spending, saving, and borrowing habits are unchanged. However, those who report a change are more likely to say they have been doing less across each category, i.e., spending, saving, borrowing, using credit or paying of loans or credit less, as opposed to more.

Bar graph showing Americans levels of concern over various issues regarding their spending habits

5. There is little change in the amount people are spending and saving since mid-December 2021.

Chart showing Americans levels of concern over various issues regarding their spending habits over time

6. Comfort with making major and other household purchases relative to six months ago is still muted despite showing slight improvement from two weeks ago. A majority still say they are less comfortable with both.

  • 45% say they are more comfortable making major household purchases compared to six months ago, up 4 points from two weeks ago.
Line graph showing consumer comfort making major household purchases over time.
  • 46% say they are more comfortable making other household purchases compared to six months ago, up 2 points from two weeks ago.
Line graph showing consumer comfort making other household purchases over time.

 

Questions

The data used for the Consumer Confidence index and sub-indices is based on the following questions:

1. Now, thinking about our economic situation, how would you describe the current economic situation in US? Is it… very good, somewhat good, somewhat bad or very bad?

2. Rate the current state of the economy in your local area using a scale from 1 to 7, where 7 means a very strong economy today and 1 means a very weak economy.

3. Looking ahead six months from now, do you expect the economy in your local area to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?

4. Rate your current financial situation, using a scale from 1 to 7, where 7 means your personal financial situation is very strong today and 1 means it is very weak

5. Looking ahead six months from now, do you expect your personal financial situation to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?

6. Compared to 6 months ago, are you NOW more or less comfortable making a major purchase, like a home or car?

7. Compared to 6 months ago, are you NOW more or less comfortable making other household purchases?

8. Compared to 6 months ago, are you NOW more or less confident about job security for yourself, your family and other people you know personally?

9. Compared to 6 months ago, are you NOW more or less confident of your ability to invest in the future, including your ability to save money for your retirement or your children’s education?

10. Thinking of the last 6 months, have you, someone in your family or someone else you know personally lost their job as a result of economic conditions?

11. Now look ahead at the next six months. How likely is it that you, someone in your family or someone else you know personally will lose their job in the next six months as a result of economic conditions?

Additional questions:

1. In the past few months, have you done each of the following more than, less than, or as much as you usually do?

  • Draw from your savings
  • Spend money
  • Invest or save money
  • Borrow money or use credit
  • Pay off your loans/credit

About the Study                   

These findings are based on data from an Ipsos survey conducted April 4-5, 2022 with a sample of 933 adults aged 18-74 from the continental U.S., Alaska, and Hawaii who were interviewed online in English.

The sample was randomly drawn from Ipsos’ online panel, partner online panel sources, and “river” sampling and does not rely on a population frame in the traditional sense. Ipsos uses fixed sample targets, unique to each study, in drawing a sample. After a sample has been obtained from the Ipsos panel, Ipsos calibrates respondent characteristics to be representative of the U.S. Population using standard procedures such as raking-ratio adjustments. The source of these population targets is U.S. Census 2016 American Community Survey data. The sample drawn for this study reflects fixed sample targets on demographics. Post-hoc weights were made to the population characteristics on gender, age, race/ethnicity, region, and education. 

Statistical margins of error are not applicable to online non-probability polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.9 percentage points for all respondents. Ipsos calculates a design effect (DEFF) for each study based on the variation of the weights, following the formula of Kish (1965). This study had a credibility interval adjusted for design effect. For n=933, DEFF=1.5 and adjusted Confidence Interval=+/-5.4 percentage points.

Findings from March 2010 to early March 2020 are based on data from Refinitiv /Ipsos’ Primary Consumer Sentiment Index (PCSI) collected in a monthly survey on Ipsos’ Global Advisor online survey platform with the same questions. For the PCSI survey, Ipsos interviews a total of 1,000+ U.S. adults aged 18-74. The Refinitiv/Ipsos Primary Consumer Sentiment Index (PCSI), ongoing since 2010, is a monthly survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings, and confidence to make large investments. The PCSI metrics reported each month consist of a “Primary Index” based on 10 questions available upon request and of several “sub-indices” each based on a subset of these 10 questions. Those sub-indices include a Current Index, an Expectations Index, an Investment Index, and a Jobs Index. 

Findings for January 2002- February 2011 are based on data from the RBC CASH Index, a monthly telephone survey of 1,000 U.S. adults aged 18 and older conducted by Ipsos with a margin of error of +/- 3.1 percentage points.

For more information on this news release, please contact:

Chris Jackson

Senior Vice President, US

Public Affairs

+1 202 420 2025

[email protected]

About Ipsos

Ipsos is the world’s third largest Insights and Analytics company, present in 90 markets and employing more than 18,000 people.

Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.

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The author(s)
  • Nicolas Boyon Senior Vice President and Ipsos Global Advisor Lead
  • Catherine Morris Data Journalist, US, Public Affairs
  • Johnny Sawyer Senior Research Manager, US, Public Affairs
  • Hailey Foster Research Analyst, Public Affairs

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