New Research Reveals Why 3 in 5 Americans Think the Economy is in a Recession
23 Juillet 2024 - 3:00PM
Business Wire
Amidst economic uncertainty, Americans seek
control and transparency via flexible payment options
Three in five people believe that the U.S. is currently in a
recession, even though we’re not in one officially, according to
new research from Affirm (NASDAQ: AFRM), the payment network that
empowers consumers and helps merchants drive growth.
The survey of 2,000 Americans explored what’s driving this lack
of consumer confidence in the economy. Inflation and the rising
cost of living (68%) tops the list of reasons why respondents
believe the U.S. is in a recession, followed by friends and family
members complaining about money (50%).
Conducted by Talker Research on behalf of Affirm, the research
found other reasons included noticing friends cutting back on
spending (36%) and not being able to pay off credit card debt
(20%).
On average, respondents who feel the U.S. is in a recession
believe it started over 15 months ago, roughly in March of 2023.
And they don’t expect it to go anywhere quickly — they believe this
feeling will last until around July of 2025. As a result, some
Americans are questioning their own financial futures.
Nearly seven in 10 (68%) of Americans surveyed said the current
inflation rate is negatively affecting their future plans,
including their ability to save and afford upcoming purchases.
“With confidence in the U.S. economy at a low point, consumers
are urgently seeking ways to feel in control of their finances,”
said Vishal Kapoor, SVP of Product at Affirm. “Amidst these levels
of uncertainty and doubt, we believe that the antidote to the
current ‘vibecession’ is greater choice and transparency in how
people manage their finances.”
People are adjusting to the current economic environment by
turning to budgeting and flexible payment options. Almost all (89%)
Americans surveyed said having a predictable monthly budget is a
priority when managing their finances.
Transparency is also key, with six in 10 Americans (63%)
preferring to see the total cost of a purchase upfront, including
any interest charges.
To help them budget and remain in control, Americans are seeking
more strategic ways to pay for their purchases. More than half
(54%) of Americans surveyed have used or would use “buy now, pay
later” options, while nearly half (45%) agree that these options
make it easier to stick to a budget and manage their finances.
Additionally, almost one in two respondents (48%) said the
availability of 0% APR pay-over-time offers — which allow people to
spread out their purchases over the course of several months
without paying any interest — affects their purchasing
decisions.
“While conversations around money may contribute to the
pessimistic outlook on the economy, it also means that people are
discovering smarter ways to pay, including options to pay over time
without any late or hidden fees,” said Kapoor.
Survey methodology:
This random double-opt-in survey of 2,000 general population
Americans was commissioned by Affirm between June 20 and June 24,
2024. It was conducted by market research company Talker Research,
whose team members are members of the Market Research Society (MRS)
and the European Society for Opinion and Marketing Research
(ESOMAR).
About Affirm
Affirm’s mission is to deliver honest financial products that
improve lives. By building a new kind of payment network – one
based on trust, transparency and putting people first – we empower
millions of consumers to spend and save responsibly, and give
thousands of businesses the tools to fuel growth. Unlike most
credit cards and other pay-over-time options, we show consumers
exactly what they will pay up front, never increase that amount,
and never charge any late or hidden fees. Follow Affirm on social
media: LinkedIn | Instagram | Facebook | X.
AFRM-A
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Press Contacts: Affirm Andrea Hackett
press@affirm.com
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