New York - Almost three-in-four Americans are holding back on spending, according to a new Bankrate.com report, with stagnant income the most frequent reason (32%), followed by the need to save more (24%) and worries about the economy (20%). Just 27% of Americans say they are not holding back spending at all.
- Every age and income bracket is feeling less comfortable with the savings they have now compared to one year ago.
- Among 50-64 year olds, those less comfortable with their savings outnumber those more comfortable by a three-to-one margin.
- Every age and income bracket reports higher net worth than one year ago, except households with income under $30,000.
- Americans younger than age 50 are more likely to say their overall financial situation is better now than one year ago, while those 50 and older typically say it is now worse.
“With hundreds of thousands of government employees furloughed and many government contractors reeling from the shutdown, feelings of job security plummeted to the lowest level in nearly two years,” says Greg McBride, CFA, Bankrate.com’s senior financial analyst. “Seventy percent of the economy relies on consumer spending, so when this many consumers are cutting back, it’s going to be hard for the economy to get out of first gear.”