As storm clouds gather around the economy, many Americans are pulling back on spending and hunkering down for tough times.
A clear majority of folks — 60% — are postponing plans or purchases of one type or another, according to a Northwestern Mutual survey of 2,740 adults for its 2023 Planning & Progress Study.
Survey respondents say they are closing their wallets on the following types of spending.
1. Making daily purchases
Respondents who said they have postponed doing this due to recent economic uncertainty: 36%
Postponed daily purchases include things like meals out, new clothing and event tickets, according to Northwestern Mutual.
2. Making/funding large purchases or projects
Respondents who said they have postponed doing this due to recent economic uncertainty: 29%
Northwestern Mutual says postponed large purchases and projects include expenses like a new car or boat or remodeling a home.
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3. Buying or building a new home (tie)
Respondents who said they have postponed doing this due to recent economic uncertainty: 12%
It’s getting tougher to find good homes for sale, so perhaps it’s just as well that people are putting purchase plans on the back burner for now.
However, if you are looking for a home today, stop by Money Talks News’ Solutions Center and find a great mortgage rate.
3. Changing jobs or searching for a new job (tie)
Respondents who said they have postponed doing this due to recent economic uncertainty: 12%
With an uncertain economic future, sticking with an employer who knows and values you can seem like the prudent choice. Many of the survey respondents apparently agree.
For example, nearly one-third of Gen Z members — 29% — told Northwestern Mutual that they are putting job-search plans on hold for now. That’s far more than any other generation polled.
Other deferred plans and purchases
Here is the rest of the plans and purchases people are delaying due to recent economic uncertainty:
- Starting a 401(k) or other investment account: 10%
- Starting a business: 8%
- Retiring or leaving the workforce: 6%
- Starting or attending college: 6%
- Getting married: 5%
- Having or adopting children: 4%
- Getting divorced: 2%
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