Poll: 2 in 3 see no financial boost in 2022
Two-thirds of U.S. consumers don’t expect their personal finances to improve in 2022, with just over half of that group citing inflation as a barrier to better financial health, according to the Financial Security Index of Bankrate December. Inflation jumped 6.8% in November 2021, putting it at an all-time high of 39 years as food, housing and energy prices soared.
“Inflation concerns have lowered consumer confidence to its lowest level in a decade and is the number one reason Americans don’t expect their finances to improve, especially to improve. deteriorate, “said Greg McBride, chief financial analyst at Bankrate. “This sentiment goes far beyond gas prices, as inflation has spread and consumers are seeing higher prices at every turn.”
Other main reasons cited by those who do not expect financial improvement in 2022 include the ongoing COVID-19 pandemic, stagnant or falling wages, personal debt and changing interest rates. . Of the one-third of respondents to the personal finance survey who expect their financial situation to improve in the coming year, 46% attribute their optimism to making more money at work and 36% to having less debt.
- COVID-19 Still Seen As A Financial Barrier In 2022
The current COVID-19 pandemic is one of the main reasons people expect their personal finances not to improve in 2022, according to the survey, which was conducted after the emergence of the omicron variant. As the country is on the verge of entering the third year of the pandemic, rising prices and supply chain issues are areas of concern, and some people continue to postpone financial milestones as a result.
The omicron variant may spread more easily than other variants, and the effectiveness of vaccines against these new variants remains to be determined, the CDC reports. It also remains to be seen to what extent the omicron will affect the economy, experts say.