A majority of U.S. consumers continue to report experiencing affordability challenges for necessities, like food and gas, and have cut back spending in other areas as a result, according to the latest Banking and Payments Intelligence Report by JD Power.
The survey found that the percentage of financially healthy consumers dropped three percentage points in August to 63%, while the percentage of respondents who said monthly expenses feel less affordable than they did six months ago held steady at 43%. Still, more than three in four consumers said they have cut back on day-to-day expenses such as dining out and buying less expensive brands in stores.
Asked what everyday expenses are causing respondents the most stress, groceries led the list, followed by gas, housing, utilities, credit card or other debt payments, and healthcare and prescriptions. The survey also found that many consumers are looking for better ways to manage their finances amid rising prices.
“This is a clear pathway for banks to proactively intervene and make a difference in their customers’ lives,” according to JD Power. “Consumers are struggling to meet their existing budgetary needs. With new seasonal costs about to enter the mix, this is an important time for banks to talk to new and existing customers about what the next six to 12 months should look like and create a plan to cover all scenarios.”
