Economic uncertainty and stalled income growth are making Americans much more cautious with their money.
That’s the finding a new survey from Bankrate.com. Earlier this month, Princeton Survey Research Associates International (PSRAI), interviewed 1,000 U.S. adults about their spending habits and found that 72% were restraining their spending. Only 27% of those surveyed indicated that they were not cutting back.
Respondents to the survey identified a number of reasons for their curtailed spending habits. Little or no increase in income was the most commonly cited reason for spending caution, noted by 32%, while 24% said they were trying to boost their savings. Another 20% attributed reduced spending to concerns about the direction of the economy.
Bankrate’s Financial Security Index currently stands at 97.4, its lowest reading since February. Index readings below 100 worsening feelings of economic security compared to the prior year.
Lower spending by Americans has left many retailers struggling this year.