Many Americans are taking steps such as cutting back on discretionary spending and building emergency funds as they prepare for a recession, according to a new survey by J.D. Power. The poll found that 45% of respondents said they were cutting discretionary spending in anticipation of a recession. Forty-one percent said they were building emergency funds, while 40% said they were paying down debts. Smaller percentages said they were taking steps such as having more cash available, lowing their fixed expenses and investing more.
Asked if they were financially prepared for a recession, 36% of respondents said they were somewhat prepared but felt they could do more. A quarter of respondents said they didn’t know where to start in terms of preparation. The survey also found the percentage of financially healthy Americans increased to 31% in December from a 13-month low of 29% in November.