Americans Divided in Their Views of the Economy

Americans in a new survey from Edward Jones are about equally divided in their views on the state of the U.S. economy.

Forty-five percent said they are optimistic about the direction of the economy, while 42 percent are pessimistic. Respondents’ top concerns:

• Inflation: 83 percent
• Supply chain disruptions: 77 percent
• Employment rate: 71 percent
• Interest rates: 71 percent

According to the survey, the more worried respondents are with economic conditions, the bigger the effect those concerns have on their financial decisions. Forty-one percent said they have considered the rate of inflation when making financial decisions in the past nine months.

“Americans have certainly been faced with disruptive conditions over the past year,” Mona Mahajan, senior investment strategist at Edward Jones, said in a statement.

“While we may see increased levels of market volatility in this backdrop, we believe economic fundamentals remain solid; it’s important to not let fear, anxiety, or even excitement about markets derail long-term goals and thoughtfully considered financial strategies.”

See also:

• What Would a Bursting Bond Bubble Look Like?
• Navigating the Inflation Headache
• Uneven Optimism Across USMCA Businesses

Morning Consult conducted the survey in early January among a national sample of 2,200 adults.

Seventy-nine percent of respondents said they have carefully planned their financial decisions over the past nine months despite economic uncertainty stemming from the pandemic. Still, 21 percent acknowledged making primarily emotional decisions regarding their finances, including 37 percent of Generation Z investors.

Asked what factors they consider when making financial decisions, 30 percent of survey participants cited careful financial planning, 23 percent said they seek advice from family and friends, 23 percent watch the market, and 22 percent ask a financial professional for advice.

From: ThinkAdvisor