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- US Consumers & the Economic Outlook Market Report 2024
Over a year removed from the worst bout of inflation the country has seen in four decades, the US economy has continued to defy expectations.
Amr Hamdi, Finance Analyst
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Executive Summary
- What you need to know
- Consumer trends: key takeaways
- Consumers' financial outlooks are more upbeat off the back of cooling inflation
- Graph 1: opinions on financial future, 2024
- Wages have outpaced prices since last May – the first time in over two years
- Graph 2: wages and CPI, percent change from year ago, 2021-23
- Student loan repayments remain a pain point for younger consumers
- Graph 3: % of consumers concerned about student loan repayments, by generation, 2024
- Consumers' appetite for travel remains strong early in the year
- Graph 4: planned financial behaviors over the next three months, by household income, 2024
- Opportunities
- Greater engagement is needed between FIs and those impacted by the student loan payment restart
- NetCredit and Fidelity reached out to impacted customers to remind them of the wellness tools they have at their disposal
- High-earners' travel voracity presents golden retention and acquisition windows for issuers
- High annual fee cards touted the elevated travel experience and perks that come with being a member
- Consumers of all ages are planning to add to their savings coming off the holidays
- Graph 5: planned financial behaviors over the next three months, by age, 2024
- Households' saving intentions present significant acquisition opportunities for FIs' high-yield offerings
- Laurel Road and Barclays went beyond standard rate-callouts – highlighting the lack of fees as well as showcasing their other high-yield products
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Consumer Insights
- Consumer fast facts
- Consumers' financial outlooks
- Consumers' financial optimism is drawn out across most income brackets
- Graph 6: opinions on financial future, by household income, 2024
- FIs must offer up more support to their financially struggling customers
- Financial services brands spotlight debt repayment resources to help customers heading into the new year
- Change in financial situation
- 34% of consumers have seen their financial situations improve off the back of a solid economic climate
- Graph 7: change in financial situation over the past 12 months, 2024
- Consumers not currently seeking work are least likely to feel financially worse off
- Graph 8: % of consumers that are financially worse off, by employment status, 2024
- Married consumers are the most likely to have seen positive gains across their finances
- Graph 9: % of consumers that are financially better off, by marital status, 2024
- Student loan repayments are likely to have hampered the financial progress of younger generations
- Graph 10: % of consumers that are financially worse off, by generation, 2024
- Economic concerns
- Inflation is households' top ranking concern, especially among those financially struggling
- Graph 11: top economic concerns ranked, 2024
- Financially struggling households are the most concerned about inflation
- Graph 12: % of consumers most concerned about inflation, by financial situation, 2024
- Financial behaviors
- While discretionary spending tends to rise in time for the holidays, many households still found room to add to their savings late last year
- Graph 13: financial behaviors over the past year, 2024
- High-earners expect to spend more of their money improving their homes in the near term
- Graph 14: planned financial behaviors over the next three months, by household income, 2024
- Discover balances quantitative and experience-driven factors in its home equity loan messaging
- Changes consumers would make in their budgets
- Cheaper grocery alternatives and spending less on clothes and dining out are how most consumers are stretching their dollars
- Graph 15: changes consumers have made and would make to their budgets, 2024
- Lower-earning consumers will naturally pursue the more cost-effective options
- Graph 16: changes consumers would make if forced to restrict their budgets, by financial situation, 2024
- Financially struggling households compromise the most when it comes to their budgets
- Graph 17: changes consumers have made to their budgets in the past six months, by financial situation, 2024
- Younger consumers would lean more on credit products if they needed to
- Graph 18: changes consumers would make if forced to restrict their budgets, by generation, 2024
- Educating younger consumers about popular credit outlets such as BNPL could mitigate the risk of financial overextension
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State of the Economy
- Market context
- US economic overview
- The US expanded by over 3% in the fourth quarter
- Graph 19: quarterly real GDP growth, 2020-23
- Annual inflation unexpectedly rose in December, but still sits at its lowest levels in over two years
- Graph 20: headline CPI, core CPI, and shelter CPI, 2021-23
- Unemployment continues to sit near historic lows
- Graph 21: unemployment rate, 2019-23
- Consumer confidence is at its highest point in over two years
- Graph 22: consumer sentiment index, 2021-24
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Appendix
- Consumer research methodology
- Generations
- Abbreviations and terms
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